Help for industrial property tenants facing sharp rent increases
We’re continuing to see soaring rents for those leasing industrial property across the Midlands. Compared with five years ago, industrial tenants facing rent reviews or lease renewals are being asked to pay upwards of 50% more on previous rates. Consequently, occupiers are seeking industrial rent advice and support.
Industrial rent increases are being driven by an imbalance between supply and demand. Online retail and demand for greener warehousing of better quality are among the well-known factors causing growing demand. Yet the supply of industrial stock is low. This is due, in no small part, to increasing construction costs, which are deterring development.
Martin Cook BSc (Hons), MRICS, KWB’s Head of Valuation & Lease Advisory, said: “Industrial rents are showing no signs of slowing down. Unfortunately, some landlords are looking to make the most of this situation by increasing rents above market levels.
“Sadly, in some cases the rent increases are unaffordable. This causes firms to move to alternative premises or even go out of business.”
How KWB can help tenants with industrial rent advice
If you have a rent review or lease renewal and feel the increase is unreasonable, please contact Martin today for industrial rent advice.
As a professional valuer, he will seek to reduce your industrial rent by looking closely at your lease and the rental provisions and other assumptions it contains. Combined with KWB’s extensive local market insight, his expertise can give you the competitive edge if you were to instruct him to negotiate with your landlord on your behalf.
In most cases, we can structure our fees based on savings achieved on quoting rent and other incentives, such as rent-free periods. KWB can also represent you in referrals to third party determination.
In one recent settlement in the Midlands, Martin reduced a quoted rent increase by 20%, from £275,000 down to £230,000.
KWB can provide sound, well-informed advice based on up-to-date market values and knowledge of the relevant legislation. We can assist you on all areas of industrial rental costs, including rent reviews, lease renewals and lease restructuring.
For more information on KWB industrial and rental advice, contact Martin Cook on mcook@kwboffice.com or 0121 233 2330.
