On behalf of a Landlord, our Lease Advisory team successfully agreed a rent review of an industrial premises in Greater Manchester achieving a 30% increase in rent.
Commercial property leases with a term over 5 years will usually contain rent review provisions at regular agreed intervals, most commonly every three to five years.
The reason for a rent review is to allow the passing rent to rise in line with market rates and inflation. Most commercial property leases contain an ‘upwards only’ rent review clause, meaning the rent can only increase or stay the same – even if rental rates are falling.
Rent reviews are important because they allow the landlord to adjust the rent to reflect changes in the market and ensure that they are receiving fair compensation for the use of their property. Tenants also benefit from rent reviews because they provide an opportunity to negotiate rent increases or decreases based on changes in their business or economic conditions.
For these premises we used our expert market knowledge of the county’s industrial property market to establish how rates have increased on comparable properties. Other considerations include; profitability, condition of the buildings and infrastructure, permitted use, planning use and alternative uses, local demand and tenants Improvements to name a few.
How can we help you?
As commercially minded chartered surveyors with a dedicated lease advisory team, we act for many landlords and tenants nationally to mitigate costs and delays ensuring the property they occupy or own remains an asset and not a liability.
We also act for parties who have tried to negotiate their own review, but the dispute has stalled and is referred to ‘3rd Party’ through one of the dispute resolution processes as Arbitrator, Mediator, Advocate or Independent Expert.
Seeking our advice at the earliest opportunity most often delivers the best chance of a successful outcome.
Contact us?
If you are a landlord or a tenant and require assistance with your lease renewal or rent review, please contact Karl Overton on 07852 256 923 / karl.overton@parkinsonre.com
Karl Overton BSc (Hons) MRICS
Senior Surveyor – Lease Advisory
M: 07852 256 923
