Negotiating A Rent Review
Where a rent review is not linked to a break option the tenant will not have the ability to use the threat of exercising the break option and relocating as a bargaining counter. It is therefore fundamentally important to have access to up to date market data to support a reduction in the landlord’s proposed new rent, where the landlord is seeking to implement a rent review.
Most commercial property leases incorporate rent reviews at 5 yearly intervals and are structured on the basis that the rent at review will be based on the market evidence of lettings of office space or similar age, condition, specification, size and location at, or close to, the review date.
It is common, and certainly prudent, for a tenant to appoint an experienced rent review consultant, with a detailed knowledge of the office market, rents and rent free periods who can negotiate a reduction in the landlord’s proposed new rent. In the event of non-agreement it is usual for a lease to provide for the matter to be referred to an independent expert or arbitrator and in this instance the rent review consultant would, using his / her market knowledge prepare proofs of rental evidence for submission to the expert / arbitrator to justify a lower rent review settlement.
Factors that will affect the outcome of the rent review settlement:
- The age, size, condition, specification & location of the office space
- Market conditions / the rents being agreed on comparable office space
- The wording of the lease / the rent review valuation assumptions
- The extent of the market knowledge, experience and skill of the rent review consultant to prepare thoroughly researched proofs of evidence to justify a lower rent review settlement
Click here to download the Carter Jonas rent review consultancy service brochure.
The Carter Jonas Rent Review Consultancy Team only represents the interests of office tenants. The Team does not provide property consultancy services to landlords to prevent any conflicts of interest developing and has an established track record of representing tenants in rent review negotiations in the City, City Fringe, Docklands, South Bank, Midtown, West End and West London office markets.
Click here to obtain the latest copy of our London Office Rent Guide
Further information on rents, rent free periods and developing a rent review negotiating strategy is available upon request by contacting Michael Pain & Greg Carter.
Michael is Head of Carter Jonas’ London Tenant Advisory Team and specialises in providing office search, lease negotiation, relocation management, rent review and lease restructuring consultancy ser...
Greg is a Partner in the Tenant Advisory Team and, provides office search and lease negotiation advice to office tenants in and around central London. This includes helping tenants to develop their fu...