Rent Review Case Study
Rent review case study
MAPC acted on behalf of a professional services business, who have multiple offices across the UK, when they were faced with a rent review in which the landlord wanted to increase their rent by £19,000 pa, which represented a 19.5% increase in their annual fixed costs.
Upon appointment of MAPC, we were quickly able to agree the floor areas with the landlord, allowing us to fix a base for the rental rates which are always quoted as rates per sq ft.
We then read the lease and noted several onerous provisions, which were not in line with modern market standards, such that we could use these provisions in support of a reduction from the agreed rental rate to compensate for the restrictions they placed on our client.
Through rigorous analysis of the rental evidence presented by the landlord we were able to agree with the landlord that differences between our client’s property and the property used as evidence existed, such that the landlord’s evidence carried less weight than they originally intended. This was supported by our own evidence, which resulted in a lower rental rate per sq ft being achieved.
The rent review was finally agreed at a revised rent £17,000 pa below the landlord’s initial suggestion, saving our client £85,000 over the 5 year lease period and representing an increase in their fixed cost of only 3%.