"Midtown is a definition that wasn created by Mayfair-based agents to described an area that they do not really know," says Paul Dart, one of the four founding partners of new agency Monmouth Dean.Indeed, despite the fact that the firm's core patch includes Covent Garden, Holborn and Bloomsbury, Soho-based Monmouth Dean does not want to be labelled a Midtown firm. In fact, the firm's plain-speaking partners would be happy to see the "Midtown" tag ditched altogether.That might seem surprising, given that, before resigning late last year, both Dart and his Monmouth Dean colleague, Rhys Evans, worked for a firm that trades strongly on its Midtown expertise: Bow Lane-based EA Shaw."Occupiers don't use the term," says fellow founding partner Ray Walker. "They call the areas Covent Garden, Holborn and Bloomsbury."Jason Hanley, Monmouth Dean's fourth founding partner, chips in: "Around 80% of tenants in Midtown come from the West End, as opposed to the City. Holborn and its surrounding area is essentially an extension of the West End."Midtown stalwarts EA Shaw and Farebrother would no doubt jib at such sentiments, but Monmouth Dean is eager to style itself as a firm that deals purely in office lettings and disposals in Soho, Noho, Covent Garden, Bloomsbury and Holborn.It is an area that they see as a coherent patch, and the stomping ground of trendy, often media-related occupiers, as well as corporates which do not feel at home in plush Mayfair and St James's or in the steel and glass towers of the City.Monmouth Dean opened for business in January, following Dart's and Evans' departures from EA Shaw, Hanley's departure from the West End office of GVA Saxon Law and Walker's six-month period as an independent agent, after he left NB Real Estate's West End office last year.The firm is based in a small office in Golden Square, in the heart of Soho's "Medialand". As well as the four partners, also on staff is graduate surveyor Emily Cook.The decision to leave the relative security of established firms during such troubled economic times was easy, the partners say.FrustratedHanley explains that the group was frustrated with the discretionary bonus culture of the big agencies. "In the past, I have brought in £450,000-£500,000 each year for three years in a row, and bonus payments varied from being fantastic to non-existent."Dart adds: "A lot of good agents in the past two years have been penalised because other parts of their companies haven't performed."Perhaps mindful to add that Monmouth Dean was not set up for purely negative reasons, Evans says: "The motivation was also for the way of life of owning our own business. It's a breath of fresh air, and we're working with good people that we know we can rely on."Dart, Evans, Hanley and Walker, who are all in their 30s, have known each other for around 15 years through the London agency scene, and there is an easy camaraderie between the partners.But the firm is starting out at a competitive time. Monmouth Dean will not only have to compete with the corporate might of the national and international agencies with West End bases, as well as the niche Midtown agents, but also a clutch of rival recent start-ups. These include H2SO, formed by a well-known team of local agents including former DTZ director Paul Smith, and Hanover Green, the firm formed late last year by a group of former DTZ agents.So, how will Monmouth Dean make its name in the increasingly busy agency landscape?The team explains that focusing purely on office agency work in a clearly defined patch will allow them to target a specific market, rather than being spread too thinly. The fact that the team members have each been able to retain long-standing clients will be a major plus, they add."All our work at our previous companies was self-generated," says Dart. "It's a people business, and clients are loyal to individuals."Hanley proudly reels off a few statistics. Since the firm was set up, he says, it has carried out close to 100,000 sq ft of transactions, split between disposals and acquisitions, and has taken on 350,000 sq ft of landlord space to let.Among its instructions is an element of the Duchy of Lancaster's estate (also known as the Queen's estate) comprising 2.5 acres of freehold, and Roche Properties' UK House office building in Noho, where it has increased asking rents from £39.50 per sq ft to £42.50 per sq ft.As for the market into which the firm has been born, Hanley argues that there is a lack of 5,000 sq ft-plus, grade-A stock available. Incentives, he claims, have come in from last year's level of 15 months rent-free on a five‑year letting to 10 months rent‑free. Headline rents are back around the £50 per sq ft mark, from a drop to the low £40s per sq ft during the recession.The partners are also keen to point to their use of the internet as a method of competing effectively. The firm's web address is plastered onto its advertising boards alongside its landline phone number, although the majority of customer calls are coming through the mobile phone numbers listed on the website. In a web-savvy era, says Evans, Monmouth Dean is placing much emphasis on its user friendly website."The property industry has been remarkably bad at promoting web information to end users," he says.As for the future, the partners insist that the business model will remain focused on their key patch for the time being, but the number of fee-earners could rise to seven by the end of the year."We'll outgrow this office by September and take more space by the end of the year," says Hanley. Evans adds: "We'll be around for 20-25 years. We've already looked that far into the future."
News
April 2010