HOT CAKES AND COOL RENTS!
CLIENT BRIEFThis is an excellent example of what makes Ask-re different from other agents and a uniquely effective and valuable partner to our clients. We were instructed by our client…
CLIENT BRIEFThis is an excellent example of what makes Ask-re different from other agents and a uniquely effective and valuable partner to our clients.
We were instructed by our client to tackle their adverse rent review position under the existing lease. The rent was due to be doubled with no offer of beneficial changes for the tenant in an insecure lease package expiring in 2020. An extremely unfavourable position for our client to be in! Fortunately, ask-re managed to completely turn things around, from a liability into a substantial asset, at no cost to the client.
OUR PROFESSIONAL APPROACHApplying our specialist skill-set, ask-re negotiated a new 15-year lease, which is especially important for our client as an established presence in Mayfair’s hottest retail spot, so that they will be able to retain their premises stress-free for the next decade and a half. With no premium payment required and no increase in their existing base rent and no turnover share to be paid by the tenant on top, this was a brilliant start to our efforts in saving money for the client business.
The new total rent is set at 25% of the current market level has been set for the duration of the lease with rent increases capped at RPI, which is phenomenal considering the ‘hot cakes’ rent inflation over the past 5 years has been upwards of 20% per year. Very cool, we think!
THE SUCCESS STORYFurther highlights of this outstanding deal, and why it is so much more than just a rent review, include no rent hikes by open-market rent reviews in 2020 or 2025, and no turnover rent on top of property rent - which is a unique exception on this estate of retail tenancies! This also impacts future deals for our clients with its other properties across the landlord portfolio, including holding the rent down on an upcoming review at another of their premises in Mayfair. There may also be potential to reduce the business rates base from April 2017 and the Revaluation that’s rolling in!
Altogether, pretty good for “just” doing a rent review. Let’s hope we do as well in 2030(!) when we need another great deal for them.