Rent reviews, lease renewals and lease restructuring
After several years of rental decline or, at best, stagnation since the ‘financial crisis’, we are now witnessing some rental growth in the regions. This is giving landlords the opportunity to increase rental levels at lease renewal or rent review. It is, therefore, very important that professional advice is taken at an early stage before entering negotiations.
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.
Our services include:
- Rent reviews
- Lease expiries and renewals
- Dispute resolution – acting as expert witness in rental valuation disputes, including referrals to arbitrators and independent experts
- Lease restructuring – re-gears, surrenders and renegotiation
- Lease due diligence
- Rental valuation advice
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 commercial property 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 for either party, from 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.
We are also experienced in preparing arbitration and independent expert reports, as well as expert witness representations, should it be necessary to refer a review or renewal for third party determination. We also have members of the Chartered Institute of Arbitrators and members on the RICS panel of arbitrators and experts.
Case study – conducting a successful rent review
Advanced Manufacturing Hub
Location: Queen’s Road, Advanced Manufacturing Hub, Aston, Birmingham
Client: Astra Engineering Products
Size: 50,000 sq ft
Astra Engineering Products specialises in presswork, assembly and tooling for the automotive sector, with such clients as Jaguar Land Rover. Their 50,000 sq ft industrial facility is located on Queen’s Road within Birmingham’s Advanced Manufacturing Hub.
Acting on behalf of the occupier, Astra Engineering Products, we conducted a rent review, which resulted in a 23% reduction on the asking rent. This was against a background of increased demand for logistics and warehousing space being driven by the requirements of an ever-growing online world, leading to rental and yield growth.
Drawing upon the experience and reliable, first-hand knowledge of the local market from our multi-disciplinary agency team, we were also able to re-gear and extend our client’s lease to secure their tenancy, together with a 6-month rent-free period.
Want to know more?
Contact Martin Cook0121 212 5993