The City of London Corporation, advised by the Colliers International Retail team, is supporting Leadenhall Market tenants by offering rent to be charged on a turnover basis, in the hopes it will help businesses through the challenges of the COVID-19 pandemic.
The Resource Allocation Sub-Committee approved the plan which will see new leases drawn up for any of the 35 eligible businesses that wish to take up the offer.
The letting of any vacant units within Leadenhall Market will also be on the same turnover rent basis.
The new terms aim to reduce business rents to more affordable levels during the current pandemic and will allow the City Corporation to support tenants both now and as trading conditions improve.
Policy Chair at the City of London Corporation, Catherine McGuinness, said: “This has been an exceptionally difficult year for many City businesses. We hope the option of turnover rent for those tenants based in the iconic Leadenhall Market will help to lessen the immediate burden of overhead costs and support a sustainable recovery.
“We have every faith that the Square Mile has a bright future and we are taking action, where possible, in order to preserve our unique offerings as we emerge from the shadow of the pandemic.”
Chair of the Property Investment Board at the City of London Corporation, Tom Sleigh, said: “COVID-19 has had a big impact on businesses based at Leadenhall Market, especially with workers in neighbouring offices being required to work from home.
“By offering businesses the option of turnover rent, we are providing an opportunity to manage cashflow during these tough trading conditions and build back better.
“We hope this will help to ensure the renowned Leadenhall Market continues to be the world-class retail and hospitality hotspot that we know it to be.”
Greg Stalcup in the Central London Lease Advisory team at Colliers, added:
“Physical retail and leisure space has taken a real hit this year, making it even more clear that a new dynamic approach to leasing must be taken. Offering new and existing tenants at Leadenhall Market the option of a turnover linked rent is a common sense decision, providing some much needed relief for tenants and will ensure the vibrancy of the market is maintained now and into the future.”
Discussions held with Leadenhall Market tenants while investigating the option of turnover rent showed the majority were supportive of the model.
Businesses who take up the offer will be transitioned to a five-year lease (with a break at three years) for retail tenants, or a 10-year lease (with a break at five years) for pubs, bars and restaurants.
Notes to Editors:
The City of London Corporation is the governing body of the Square Mile dedicated to a vibrant and thriving City, supporting a diverse and sustainable London within a globally-successful UK. www.cityoflondon.gov.uk