Dilapidations – Lease Disposal & Strategy for Omnicom
Relocation from 10 properties into a new 350,000sqft HQ.
Major dilapidations and lease disposal strategy.
Omnicom Europe Limited had to relocate from over ten properties into one over 4 years. Each lease had different termination dates. Some with break clauses and onerous obligations and others extending beyond the relocation date. The client assigned Cushman & Wakefield Building Consultancy team to de-risk onerous dilapidations. The team was tasked to settle larger claims as quickly as possible, leaving residual claims for a longer term approach.
Cushman & Wakefield undertook dilapidations assessments on all properties for account provisioning, providing the client with individual lease strategies with action plans and programs. Regular client and dilapidations team updates were held, focusing on actions required by delivery dates. The team focused on the easier wins, de-risking the financial exposure to reasonable levels, then applying long term negotiation strategies to the remaining properties.
As the result Cushman & Wakefield Building Consultancy team achieved:
- Short term de-risking of the dilapidations financial exposure and lease liability, by focusing on easier wins.
- Long term strategy for the remaining more complex dilapidations settlements.
- Ultimately significantly reducing the overall dilapidations financial settlement for Omnicom.
“We successfully partnered with Cushman & Wakefield to navigate us through 10 complex and large scale exit obligations on our recent London consolidation. The Cushman & Wakefield team skillfully managed and guided us through the dilapidations process, meeting and often exceeding the objectives set and ultimately achieving a very positive financial outcome" Stuart Young, Executive Vice President – Real Estate, Omnicom Europe Limited
Savings achieved on claims often in excess of 50%