Dilapidations – Lease Disposal & Strategy for Omnicom
01 The Challenge
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.
02 The Solution
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.
03 The Result
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.
Savings achieved on claims often in excess of 50%
Testimonial
"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
Meet the Team
FEATURED STORIES
AMERICAN MULTINATIONAL • Financial Services & Insurance
Secured a 20-year lease with fixed terms for a GCC, offered at 25% lower than the market standards rate in Pune.
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AN AMERICAN CHEMICALS COMPANY • Chemicals Industry
One of a kind, all-women team successfully built and designed a ~7500 SF office space in Chennai within project timelines and with substantial cost savings.
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INDIAN MULTINATIONAL CONGLOMERATE • Indian Multinational Conglomerate
Successfully advised on securing a prime location for a ~ 2,25,000 SF factory setup in Pune, ensuring seamless connectivity, acquisition of ideal facilities and adhering to critical timelines.
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LAND BROKERAGE DEAL • Residential Development
Successful land brokerage deal in Mumbai, with projected gross development value of INR 1,800+ Crore, delivering significant business impact to both parties.
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INDIAN HOME DÉCOR BRAND • One of India’s leading home décor and paint brands.
Established an extraordinary 1,20,000 SF flagship experience center—the largest of its kind in India for the brand, significantly surpassing the client expectations.
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SWISS FMCG FIRM • Fast Moving Consumer Goods
Built custom workspace on NH48, Delhi NCR in 2002. Anticipated client’s long- term needs and facilitated innovative office lease structuring in 2021.
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SUPPORTED INDIA’S LARGET JEWELLERY BRAND • Retail Jewellery Brand
Partnered with the brand to aggressively expand their retail presence by setting up a mega store. Launched the brand’s first-of-its-kind, ~ 17,500 SF mega store in Delhi, India.
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GLOBAL CONSULTANCY • Consultancy
Delivered successful workplace expansion solutions, enabling our client to expand 10X in a 3-year period, with over 2000 full time top-tier talent in Chennai.
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FRENCH LUXURY FURNITURE • Luxury Furniture Company
Built the French brand’s first store in India, which was successfully met with immediate positive reception, high footfall and substantial media coverage, establishing the brand as a pioneer in premium furnishings in India.
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AMERICAN TELECOMMUNICATIONS COMPANY • Telecommunications
Successfully supported the client’s expansion requirements, transforming their India GCC to become the MNC’s largest office footprint outside the U.S.
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AMERICAN TECHNOLOGY GIANT • Technology
Cushman & Wakefield has been a trusted partner for one of the world’s leading American technology giants for 25 years, delivering successful workspace solutions.
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AMERICAN RESEARCH FIRM • Research and consultancy
Delivered successful office leasing solutions, aiding the client in saving over USD 10 million. Provided a solid real estate strategy that supported ongoing growth and operations.
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FEATURED SERVICES
Development
There are now five economic factors of production - Labour, Land, Capital, Entrepreneurship, and Data. At Cushman & Wakefield, we understand the significance of each to generating successful outcomes in real estate development.
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Future-proof your portfolio. Create inspiring on-site experiences. Unlock the potential of your real estate.
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Enter Cushman & Wakefield, a globally renowned leader in real estate services, dedicated to transforming spaces and maximising property potential.
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Aligning your business and real estate to deliver future proof occupation strategies.
Rethinking Properties
Discover how our strategic rethinking process in the EMEA region helps you unlock the full potential of your commercial property investments. Expert portfolio assessment, scenario-based solutions, and data-driven recommendations.
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Valuation for Tax
Disposing of property can give rise to a tax liability in certain circumstances.
Landowners With Land being Acquired
Compulsory Purchase Orders can be a taxing experience for landowners, who may only receive notice of an acquiring authorities’ intention once the decision has been made.
INSIGHTS
