The rental to be paid for a commercial property is based on the interaction between a number of factors:
- the specification of the property
- it's location
- comparable premises in that market
- lease terms
It is the ability to analyse and present this information in a coherent and effective way that will lead to the optimisation of the result at any rent review.
A detailed knowledge of the property, the market and the evidence are all important in this process but it is the understanding of how this information interrelates with the provisions in the lease for assessing rental which will determine how well the review is fought for both landlord and tenant.
The ability to fight reviews comes from experience and at Dixon Wright we have surveyors with experience in all property sectors. We work to analyse the variables detailed above having specific regard to the property specification, the location of the property, comparables, and essentially, Case Law, which can be so valuable in proving how a lease is advantageous or disadvantageous to the hypothetical Tenant, thus affecting the rent eventually paid.
The team works in all three main sectors of the market and the more we handle, the better the service we can provide. The fact that we have no fear of pursuing Arbitration to secure the very best result enables us to achieve exceptional results for our clients, whether they are Landlord or Tenant.
The rent review or lease renewal is the one time when Landlords and Tenants are obliged to talk with one another. However there are other times when mutually advantageous changes to the relationship can be negotiated, examples are:
- Insertion of a break clause.
- Deletion of a break clause.
- Opening up a restrictive user clause to gain a higher rent.
- Extending the term
For further comment please see Lease Re-gear.