‘Pre-letting’ is an agreement between a potential tenant and a developer to lease a building whose construction has not yet started. Benefits typically flow to both parties from a pre-letting, however, opportunities to pre-let are limited by place, time, market forces and the negotiation strength of both parties. This research bulletin, which has been produced jointly with Northumbria University, involved interviewing 30 office occupiers and developers who have been involved in prelet agreements throughout the UK. It examines the pros and cons of taking a pre-let, the typical lease terms, and design issues. It also looks at where and when pre-lettings are most likely to occur
