How can we help?
Lease renewals are a great opportunity. For tenants, there's the possibility of incentives or lower rent, or the chance to minimise dilapidations liabilities. For landlords, of maximising asset value and securing income.
We manage the national portfolio of lease renewals for clients including Wolseley, Nationwide Building Society, Tui and Calor as well as Boots, McDonald’s, AXA, Babcock, BBC, ITV and various local authorities.
Market data is critically important when you’re negotiating a lease renewal.
Our national property database of leases, renewals and transactions provides our clients with valuable and reliable market data from across the UK, covering 70% of office and industrial key markets.
We use this information to put forward the best possible evidence on your behalf. It will also help you budget effectively and mitigate the risk of surprise as negotiations progress.
Expert witness: because lease renewals aren't always amicable
We know that lease renewals can be a legal minefield. Our team includes chartered surveyors who are experienced expert witnesses so we can take your case to court or other third-party determination if necessary.
Covering all the options to improve lease terms
Lease renewals aren’t just about rent. We will look at many options to minimise risk and maximise opportunities, including:
- Schedule of conditions
- Removal of onerous clauses
- Service Charge Caps
We understand the concerns and negotiation strategies of both parties and will use this insight to deliver the best possible result for you, whether you’re a landlord or an occupier.
We know your market
Are you aware of what’s happening in your local area and how this might affect your choices at lease renewal? What other tenants have lease breaks in the area? What about planning or road policies – do they have a positive or adverse affect?
We understand your local market context – we have a network of offices across the UK and a strong research team. Our local knowledge is all part of the service.
Whether you’re a landlord trying to protect your asset as an investment or an occupier looking to make substantial savings for your business, a lease re-gear or lease restructuring could be a golden opportunity in a difficult market.
Landlord or occupier, you can only gain from a conversation
If you’re an occupier tied into a lease that was agreed in a peak market, you’ll be frustrated. You’ll be aware that your competitors are benefiting from falling rents and high incentive packages while you could be paying 50% more than current market rents.
However, this is an opportunity for both parties. By offering more security to landlords via a lease re-gear or lease restructuring, we can also unlock savings for occupiers.
We can act for either or both parties and effectively broker a restructured lease agreement that leaves both parties with a gain.
A win-win opportunity
If you’re an occupier with multiple occupational properties, you may be able to make huge savings across the board. We can help you spot the opportunities to restructure your lease arrangements. We will carry out the initial investigations so you don’t waste time that could be spent on your core business. As our fees are based on the savings we make for you, you can literally only gain.
Mutual gain is at the heart of any lease re-gear or restructuring, with neither party obliged to conclude a transaction, a sophisticated approach is needed. We understand the concerns and negotiation strategies of both parties and will use this insight to deliver the best possible result for you.
We also understand a complex investment market. Our Lease Advisory surveyors work closely with our Capital Markets team to ensure that our lease re-gears are based on sound market intelligence and an understanding of the investment market when representing investors.
We know that the value of a lease re-gear isn’t driven by the market rent but by the capital value of the asset. We help create opportunities to increase asset value - for example by negotiating a longer lease term with your tenant in return for a drop in rent or incentive package.
Are you an occupier tied into a lease you no longer need? Or a landlord with a tenant looking to surrender their lease? We give sound advice on the value of the remaining lease and negotiate a lease surrender on your behalf.
Lease surrender: a difficult negotiation
It’s increasingly difficult for occupiers to negotiate a lease surrender with a landlord. With high vacancy rates and low demand, landlords will often be reluctant to entertain a tenant surrendering the lease unless they pay a substantial premium. However, with the right early advice, it is possible.
The key to negotiating a lease surrender is to be properly informed. When negotiating a lease surrender, we will calculate the net present value of all the liabilities of the lease for you, including:
- Running costs
- Service charges
- Business rates
It’s only when you have the full facts that you can make a decision on lease surrender terms.
What’s the next move for Landlords?
If one of your tenants is asking for a lease surrender you need to be aware of the risks in order to make an informed decision. Do you know what demand is like for your property in the market? What activity has there been for this type of commercial property recently?
By liaising with our Agency colleagues and utilising our national property intelligence we can provide the answers to these questions. We will be able to advise on current vacancy rates and when the lease expires.This allows you to make an informed decision when considering a lease surrender.
Related services for occupiers
If you are considering a move or need to consolidate, we give you early advice on alternatives in the market. We also provide business space audits so you know exactly how much space you need and provide market advice on your options.
Rent reviews are pivotal events: for investors, they can protect income flow; for tenants, they can help mitigate overheads.
Whether you’re an owner or an occupier, our rent review service will work to give you the best possible outcome, leaving you free to focus on your core business.
Market data is vitally important for a rent review. Having access to the best market information will enable you to achieve the best possible outcome.
Our national property database of market transactions gives our clients access to lease data from across the UK, covering around 70% of office and industrial property markets.
As we have the best commercial property market data, we will provide you with accurate information early in the rent review process, help you with your budgeting and mitigate the risk of a nasty surprise during the negotiations.
Experienced in analysing the detail
We’ll advise you early to ensure that the review goes as smoothly as possible. Our dedicated team is experienced in spotting issues such as:
- Is time of the essence?
- Are there any notice periods of which you need to be aware?
- Are there any onerous clauses that could equal an opportunity?
We won’t miss an opportunity or fall into a trap. We understand the concerns and negotiation strategies of both parties and will use this insight to deliver the best possible result for your rent review, whether you’re a landlord or an occupier.
We always aim for a negotiated settlement as this is usually the most cost-effective approach. However, this is not always possible.
This is why we are also ready and able to act as expert witnesses in rent reviews. You can be confident that we will advise you on the best route to the best settlement. However, if the rent review has to be decided by an expert determination or arbitration, we have the experience to deliver the best and most cost-effective outcome for you.
Get in touch
Graduate Surveyor - Lease Advisory
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