Rent reviews and lease renewals
A lease renewal can be a contentious time between you and your tenant. When looking to retain an occupier within your property on the best possible lease terms, KWB are well versed in critiquing the fine print and leading a successful negotiation process, on behalf of our clients.
Commercial property leases are very often complex in nature and can cause conflict between landlord and tenant over interpretation of the terms and in particular when reviewing the rent or agreeing new terms at the expiry of the lease.
We give sound, well informed advice based on up to date market values and our knowledge of the relevant legislation. We work closely with our agency team and you can be sure of an unbiased and impartial opinion as to where you stand.
We will advise on the best strategy to be adopted, ensuring that notices are served correctly right through to final negotiations and liaison with their solicitors. We endeavour at all times to conclude negotiations in the most time and cost effective way possible.
Case study – enhancing investment and improving income
35 Newhall Street
Location: Birmingham city centre
Client: West Midlands Pension Fund
Size: 55,000 sq ft
35 Newhall Street is a significant city centre office building, located on the corner of Newhall Street and Edmund Street in the Colmore Business District, the City’s professional and financial quarter. Owned by West Midlands Pension Fund, it underwent a comprehensive refurbishment programme and part new-build to provide contemporary Grade ‘A’ office space, combined with striking architecture.
Acting on behalf of the landlord, KWB conducted a series of rent reviews that enhanced the client’s investment and improved the income generated from the building, by bringing rental levels in line with current market values. During the process, we were able to draw upon a wealth of rental data from our office agency team that had originally let the newly facelifted building.
Management engineering and consultancy company, Mott MacDonald, is the largest single occupier within the building, occupying 20,000 sq ft on the first and second floors. As part of their rent review, we negotiated the removal of the break clause from their lease, which improved the WAULT (weighted average unexpired lease term). This key performance indicator further increased the asset value by reflecting the reduced risk of a potential void on a large proportion of the space within the building.