Businesses looking to move into London face a quagmire of agent’s fees and hidden costs. It’s always been a landlord’s market. But Devono founder Robert Leigh has become the “Tenant’s Champion” and he’s taking no prisoners.
Devono only represents tenants. The business model is centred on driving rental prices down, rather than sky high, to make a buck.
The exclusivity part is key: “There’s no conflict of interest,” says Leigh. “And our fees are self-funding. The savings we bring our clients outweigh the cost. And if we don’t find them a building, they don’t pay us a penny.”
“Say the average office space is 5,000 sq ft, which accommodates 30 to 35 people. If we were to save you £1 per sq ft beyond what you could negotiate yourself, you’re looking at a £25,000 saving over a five-year term. Tack on a one-month rent-free period based on an average rent of £40 per sq foot – worth maybe £17,000 – and all up you’re looking at a minimum saving of £42,000.”
Nice.
Leigh is a pariah amongst agents. “All the kudos lies in achieving high rents,” he says. “I used to go to all these functions where the landlords' agents would sit around and brag about the highest rent they’d pulled off. I thought, ‘Why is no one doing this for tenants?’”
Leigh founded Devono in 2004 with a £40,000 loan. The company operates exclusively in London. A pretty good patch: the commercial property sector has grown 7.9 per cent in the big smoke over the past year, compared to 3.9 per cent overall in the UK.
Devono was debt free within six months, and turnover has doubled every year to £1.75m today.