12 South Molton Street

THE TASK

Having recently acted for the Landlord in the letting of the ground floor and basement retail premises, Audley London were appointed again, this time ahead of a forthcoming lease expiry for the office tenant who occupied all three upper floors. The tenant decided not to renew the lease, owing to the space now being much larger than they required.

Accordingly, we were faced with three floors of vacant office space, in a dilapidated condition and in a poor specification. Further investigation showed that the premises were not fit for modern day requirements.

The building needed to be comprehensively refurbished, which included new air conditioning, a new staircase, levelling the floors, and finishing the office in a modern specification.

Following the refurbishment, the retail tenant’s trade was poor and now unsightly for prospective office tenants. We decided to offer a strategic and speculative surrender of their lease, having identified strong demand for retail space on South Molton Street ahead of Grosvenor and Mitsui Fudosan’s South Molton Triangle development.

Prior to the surrender completing, we were able to agree a new lease to Puffy Cookies, bringing a new F&B offering to the continuously evolving street.

The offices have been similarly successful, going under offer on two out of three floors. The landlord was faced with an uncomfortable and uncertain future, but through strategic investment, ensured their building will be fit for the future, and are now enjoying the rewards, welcoming a host of new tenants.