Honeywell successfully downsizes its premises with the expertise of iO Partners

After taking the decision to introduce a hybrid workplace model, Honeywell recognised the opportunity to downsize its current premises. Facing an expiring lease, the timing seemed ideal to explore the possibility of relocating to a space that suited its new requirements. iO Partners was approached to aid in this search, prioritising ESG initiatives and securing more flexible lease terms.

The 18-month project started with a market overview to identify and present suitable properties. Subsequently, viewings were arranged for the selected properties, and negotiations were initiated to address financial and other relevant factors. The results of the capacity studies and comparisons were provided to Honeywell to help inform its decision-making. 

Upon reaching a decision, iO Partners proceeded to finalise the commercial conditions and facilitate the completion of the addendum to the lease agreement.

With iO Partners able to negotiate a reduction in the current leased space, Honeywell decided to remain in its present location. In addition to this win, the team facilitated negotiations in upgrading the building to a Class A office building, aligning with Honeywell’s ESG targets. Project milestones were meticulously outlined and agreed upon within the lease agreement, with stringent penalties established for non-compliance. Furthermore, a generous incentive package was negotiated, including a rent-free period and fit-out contribution. What’s more, flexibility was also secured regarding the possibility of reducing the current size before the lease expiry and the start date of the new lease, alongside achieving the indexation cap.