A Landmark Commercial Property Deal in Aylesbury

This deal was extremely important to the Buckinghamshire town as it ensured the continued presence of two global businesses and all the benefits that that brings to a community.

The Challenge

Jaggard Macland had been working with their long-standing client, Esri, when a challenging situation arose:

• Esri owned Millennium House, a substantial commercial property in Aylesbury
• They were only occupying approximately 20% of the building
• The company needed to protect their investment whilst ideally remaining in their current location
• The challenge: find a new occupier for the remaining 80% of the space

The Market Context

Securing a letting for 15,000 sq ft of commercial office space is no small feat, especially given the current market conditions. Many former office spaces in Aylesbury have been converted to residential use and the commercial property market has been facing challenges. Millennium House also had a dated office specification, requiring significant refurbishment to attract potential tenants.

Steve McDermott, Partner at Jaggard Macland, took on this complex task. His approach involved:

1. Leveraging his extensive knowledge of the local market

2. Using his network of local businesses to identify potential occupiers

3. Initiating negotiations with ACCO, a global business with over 100 locations worldwide

ACCO proved to be an ideal candidate for several reasons. They were actively searching for a new location for their UK headquarters, which aligned perfectly with the available space in Millennium House. ACCO also had a long-standing connection to Aylesbury, dating back to the 1950s, which made them particularly interested in remaining in the area. This desire to maintain their local presence was further reinforced by the fact that, much like Esri, ACCO had a workforce firmly established in Aylesbury.

Overcoming Obstacles

Despite the promising fit, the negotiation process was not without its challenges. The dated office specification of Millennium House presented a significant hurdle, necessitating extensive discussions about the scope and cost of refurbishment. This tied into the need for both parties to agree on a long-term lease that would justify the substantial investment required to modernise the space. Perhaps most importantly, the deal structure needed to be put together to benefit both Esri and ACCO, striking a balance between their respective needs for security and stability. Working through these issues required patience, creativity and a deep understanding of both companies' priorities.

The Innovative Solution

Steve was able to devise an innovative lease structure that satisfied both parties. It was agreed that ACCO would lease the entirety of the space and sub-let a portion back to Esri. This arrangement provided benefits to both businesses. Esri could remain in their preferred location while optimising their property investment, whilst ACCO secured a modern, refurbished space for their UK headquarters. Both companies gained the stability they were looking for with their property strategy.

The Impact

The successful completion of this deal had far-reaching implications:

• It represents the largest letting in Aylesbury for over a decade
• The deal ensures the retention of two global businesses in the town, supporting local employment
• It demonstrates the potential for creative solutions in commercial property markets
• The agreement paves the way for significant investment in modernising a key commercial property in Aylesbury

Whilst financial and practical considerations were key, the human element also played a role in the success of this deal. Staff retention and satisfaction were important to both Esri and ACCO.

This shared commitment to their employees and the local area was a driving force in getting the deal over the line.

This landmark deal showcases the importance of local knowledge, innovative thinking and understanding the needs of all parties involved. Steve's success in brokering this agreement not only benefits his client, Esri, and the new occupier, ACCO, but also contributes to the economic landscape of Aylesbury.

Deals like this highlight the potential for creative solutions that can meet the changing needs of businesses while supporting local communities. Jaggard Macland is proud to have played its role in this chapter of Aylesbury's commercial development.

Photo credit: Quercus Interiors Ltd