Global IT giant Microsoft has capped a deal which illustrates who has the whip hand in the Thames Valley office market.
Landlord Mapeley was close to losing Microsoft from it’s three buildings on Thames Valley Park, Reading after the occupier served it’s break notice. Staring at a void of nearly 250,000 sq ft Mapeley offered new terms to entice Microsoft to stay. After months of negotiations a deal has been struck – Microsoft has committed to a new 15 year lease with a rent free period of little over a year at a rent of £23 a sq ft. There are rent reviews – capped at 5% – after 5 and 10 years but NO breaks.
The most salient point is the rent – a whopping 23% discount to that originally agreed.