BNP Paribas uses cookies on this website. By continuing to use our website you accept the use of these cookies.
Please see our cookie policy for more information.

Case Studies

Property Management Case Studies - BNP Paribas Real Estate UK  

Confidential client

Saving £2.45m by challenging the superior landlord service charge
We robustly challenged two years' service charges which included huge year on year increases

  • Location London
  • Key figures £2.45m saving on a 175,000 sq ft office building
  • Contact Lynne Brown, +44 (0)20 7484 8188


The results

  • Our client saved £2.45m service charges over two years
  • We demonstrated to the superior landlord that our client would only accept tight, streamlined budgeting in future; all budgets would be challenged
  • Our client was able to run the building to lease end within their original funding estimate without having to request further funding internally

The challenges

  • Our client inherited the lease of the building through an acquisition. They had no requirement to occupy the space which was largely sub-let to a variety of tenants. All sub-leases bar the acquired business were subject to service charge caps set at around £10psf. In 2008-2009, the service charge was increased by £1m, the majority of which would hit our client due to the caps.

What we did

  • We undertook a line by line examination of the service charge budget
  • Our team wrote to the superior landlord and challenged each line item
  • A team of specialist M&E engineers examined the lifting equipment and plant rooms as most of the budgetary increase was M&E related
  • We requested copies of all reports that formed the basis for equipment replacement
  • Following an unsatisfactory response from the landlord’s agent we withheld all the disputed service charge (£1m in the first year, £1.5m in the second year) 
Find your key contacts

Advanced search

With a presence in 36 countries, BNP Paribas Real Estate has a global reach, offering our clients in Asia, Middle East and North America unparalleled European expertise.
Carte implantations

Latest News and Insights
blogs square