Mountpark is offering a fixed £750,000 commission to the party that first secures an occupier for its 360,926-square-foot Bristol 360 cross-docked logistics facility in Avonmouth in what is a break from tradition in the UK.
The industrial developer has launched its "Let it – Get it" campaign, saying the approach has already proven successful in Spain. In 2021, an open commission helped secure an occupier for Mountpark Illescas, a 921,657-square-foot logistics facility on a Madrid distribution park.
“This sales approach worked incredibly well at Mountpark Illescas, and we were keen to replicate the strategy in the UK. Bristol 360 presented the perfect opportunity to do so, as the property is completed and ready for occupation," said Rach Clarke, Mountpark’s development director in the UK and Ireland in a statement.
"We believe Let it – Get it is the first time such an approach has been taken in the UK and are excited to see how the property community responds.” Mountpark said the £750,000 commission is open to any professional relating to the property industry, including agents, consultants and other occupier representatives.
Retailers such as the German food discounters Lidl and Aldi have taken a similar approach to site finding alongside having retained agents, but the approach is unique among industrial developers.
One leading UK adviser, who declined to be quoted on the record because of the sensitivities around advisory work, said the strategy was an "absolute break from the norm" in the UK although it is common in Europe and the US.
Prologis is among developers in the UK which are understood to have offered top-up payments to non-retained agents to find tenants, with retained agents still receiving commission, but that has not been for several years, sources said.
Another adviser said: "This is not the first time this has happened. In the dim and dark days there have been financial incentives like this, particularly where buildings have not let. Really it has not been needed for a long time."
Another leading adviser said: "This is ultimately a minefield. If someone comes to you with a name, and then someone else arranges the viewing who gets the commission for instance?"
Details of how the commission works can be found here.
Mountpark is understood to have de-instructed three leasing agents on Bristol 360 to pursue the strategy. The agents were JLL, Colliers and DTRE.
A leading UK adviser added that the commission figure would be eye-catching: "Traditionally, the three advisers would have shared a 5% commission each on leasing the building. If rents are around £8 per square feet across 360,000 square feet that would equate to maybe a £360,000 commission in total. So Mountpark's £750,000 is an eye-watering amount to encourage people to come forward."
The UK's tradition of using retained agents is often attributed to its smaller size and limited land supply as well as developers' preference to build relationships with trusted advisers.
Mountpark's Clarke added: "Our industry is renowned for its collaborative community and networking skills which make Let it – Get it the ideal opportunity for people to talk to their contacts and help find the perfect match for Bristol 360.”
Bristol 360 is at Central Park in Avonmouth, with neighbours including Amazon, The Range, Tesco and Lidl. It is a carbon net zero in construction development, rated BREEAM Outstanding and certified as EPC A+. It includes an office roof terrace and garden.
Led by chairman John Cutts, Mountpark is one of the largest industrial developers in the UK and Europe. It is located primarily in the UK, Ireland, France, Spain, Poland, Czech Republic and Slovakia from offices in Luxembourg, Amsterdam, London, Paris, Madrid, Barcelona, Warsaw and Prague.