Jul 3, 2015
Stuart Neils were instructed to act in a rent review on behalf of JW Music Media who have office space in Clerkenwell. Our client was paying a rent of £35,000 per annum for a lease from February 2010 which was a very low point in the commercial property market. The landlord sought an increase in rent of over 35% to £50,000 per annum but we have just finalised the review and agreed a rent of £40,000 which is an uplift of 12.5% over a 5 year period. We have saved the client £50,000 over the next 5 years.
There has been a lot of talk about how much rents have gone up around Clerkenwell over the last few years. Many landlord surveyors we are acting against are claiming that rents have almost doubled in the last 12 months alone for prime office space but this is not always the case and certainly not so for non-prime office space. Every lease and every building has to be judged on its merits.
A tenant in 2010 may have thought they got a good deal at the time but perhaps they overpaid and didn’t know. Alternatively the comparable evidence put forward by the landlord may not be comparable at all because of circumstances like whether both parties were represented by surveyors and whether it was an open market letting or a rent review of a lease renewal have to be taken into account. There are also a lot of deals being done where rents are lower than landlords would like but the details of these are not always reported as it is typically landlord’s surveyors who report deals. There are not many tenant only surveyors and so when a surveyor who represents the interests of both landlords and tenants concludes a deal on favourable terms for a tenant they do not tend to want it publicised for fear of it impacting on what they can achieve for their main clients who are landlords. If a landlord found out that they could not secure an increase in rent because of a deal done by their surveyor in another building when they were acting for a tenant you would expect the landlord to be looking for new representation very shortly.
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