It is safe to say that a long lease to a big corporate is a slam dunk at credit for great pricing and a march straight to completion. But times are changing and with corporates potentially down-sizing or abandoning big offices in favour of smaller hubs or Wework style offices, how will the lenders react. Most certainly pricing will be effected and that slam dunk might miss the mark sometimes at credit. Lenders like certainty, stability and a Material Tenant for the interest cover covenants.
Huge city offices, once seen as the natural home of big corporations, are facing an uncertain future. “Over the next 12 months all large corporations will be looking at how they occupy space,” says James Walker of Colliers International. Since Barclays chief executive Jes Staley made an off the cuff remark last month that “the notion putting 7,000 people in the building may be a thing of the past,” the future of the former flagships of the property sector has looked far from certain. The Times