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Keep briefed with our coronavirus e-newsletter. While there was demand for brand spanking new space, including from the likes of Netflix and law agency Slaughter and may, occupiers’ priorities have shifted, said Mr Williams. Paul Gold, cofounder of workplace leasing firm Hedge Actual Property, said that relatively than hitting all rents equally, coronavirus was prone to create a two-tier workplace market within the capital. Corporations that have taken on lengthy-leases previously few years would sub-allow them to to others, often at a heavy low cost, he said. Workplace occupancy ranges on the company’s estate was roughly 15 per cent, in response to Mr Williams, who doesn't anticipate workplaces getting past 50 per cent of capacity in the next two or three months. "That’s the place the big provide line goes to come back from. Will probably be much cheaper than any operator. That inevitably will have an effect on the market," said Mr Gold. Derwent was additionally hit by decrease than normal rent collection, suffering a roughly 20 per cent shortfall for the months since coronavirus hit the UK. The corporate is considering changing the terms of some its leases with restaurants and retailers - which make up lower than 10 per cent of Derwent’s portfolio - to permit tenants to pay rent primarily based on what they earn, quite than as a set value. So-known as turnover leases are more and more being considered by landlords trying to assist exhausting-hit businesses through the crisis.

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