Tenants looking for space in Grosvenor Britain & Ireland’s portfolio could soon be able to ditch deposits in favour of small monthly fees.
The developer has teamed up with startup Insurami to trial deposit-free leases at its first fully serviced office, 25 EP – 25 Eccleston Place in Victoria, London.
Grosvenor said the move reflected a growing need from occupiers for flexibility. As real estate continues to evolve following the pandemic, that need has led to owners and tenants working together more closely.
Charles Howard, director of offices at Grovsenor B&I, said: “The pandemic has accelerated demand for flexibility from landlords. It’s also tightened cashflow.
“Our tie-up with Insurami is the latest in a series of innovations to ensure brands choosing Mayfair or Belgravia see how a landlord can be a valuable business partner, not just a provider of space.”
By paying a monthly fee instead of a deposit, occupiers can free up cashflow and save more than 95% of upfront deposit costs, Insurami said.
The startup recently raised £42m to expand across every commercial real estate sector. Clients include flexible workspace operators such as Level39 and Huckletree and traditional landlords such as the Howard De Walden Estate.
Insurami said it has seen a surge in demand for deposit guarantees from both landlords and businesses, with momentum building after its fundraise.
Majed Chaaraoui, CEO and founder of Insurami, said: “As one of the most prestigious property companies, we are thrilled that Grosvenor is partnering with us to ensure their tenants can benefit from deposit-free commercial leasing.
“It is partnerships with forward-thinking real estate companies like Grosvenor that underline the strength of our deposit guarantee product, which is setting a new market standard to offer landlords protection whilst enabling tenants to retain capital invested in their business.”
Working with more than 20 landlords, Insurami said it achieved a record quarter in Q4, with referrals totalling £5m.