30 April 2019
Most commercial leases have provision for rent reviews and at the end of the lease, tenants usually have the right to a new lease. Having the help of a professional surveyor throughout the review or lease renewal process will likely prove invaluable – an experienced hand to guide you through the to-and-fro of negotiation.
It’s best to get the assistance of a professional as early in the process as the lease allows so that they can start monitoring your local rental market and gathering evidence for what they believe your rent should be. While it can sometimes be tempting to handle the process yourself, the savings in costs are usually outweighed by the poorer result.
The landlord will usually trigger the review although the timing of this depends entirely on the provisions of the lease. You should be aware of this timescale as it may be that, if the landlord misses deadlines to serve the notice, or the tenant misses the deadline to respond, the consequences can be significant and the landlord may lose the right to increase the rent or the tenant become stuck with a high rent.
Considering current political uncertainty and localised market volatility it is arguably more important than ever not to enter these kinds of negotiations without expert advice.
Lease advisory Partner Mark McFadden said: “SHW have been advising landlords and tenants for many decades and have a record of successful negotiations. Advising the tenant of an office building in Eastbourne recently, the process was referred to an independent expert and the resulting rent was nearly £200,000 a year lower than the landlord’s best offer to settle.
“Similarly, acting for a landlord on a town centre shop rent review, SHWs detailed knowledge of recent rental transactions nearby resulted in an increase in rent of 23.6%.
“SHW have lease advisory experts covering all of our eight offices who can achieve outstanding outcomes for all clients, whether landlords or tenants.”