Following a commercial rent review, Direct Wines disputed a proposed increase which would seriously affect the company’s business overheads. The building represented one the client’s main distribution warehouses, so it was essential to keep the rent as low as possible.
Vail Williams was appointed to negotiate the commercial rent review on Direct Wines’ behalf with the aim of achieving the lowest possible rent settlement.
However, the negotiation of the rent was not a straightforward process and the landlord fought their position fiercely.
Following an in-depth review of the situation, Vail Williams established that the rent was not being calculated on the right floor area, which adversely affected the rent review.
It transpired that the landlord was using a much larger floor area, which included a mezzanine which the tenant had installed at their own cost.
The issue of the floor areas was resolved after a detailed inspection of the property, review of the legal documents and discussion with the landlord.
One of the challenges that the case presented was the relatively low activity in the property market which meant that there were few market transactions against which the rent could be compared.
The team overcame this by looking at a wider geographical area, and making use of their extensive experience in the market sector.
- Commercial rent reviews advice
- Commercial lease reviews advice
- Advice on commercial lease renewals
As a result of the negotiations undertaken by the commercial lease advice team, the final rent increase was reduced by nearly 40% to 2.4%, saving the client over £1.83 million over the course of the next 5 years.
For further information please contact our team.
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