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 work with both occupiers and investors helping them make the most of these opportunities and mitigate against risk. We manage the national portfolio of lease renewals for clients including Boots, River Island, Gordon's Chemist, First Trust and University of Ulster.
Property intelligence: putting market data at your service
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 and Ireland.
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 both experienced and meet the requirements as set down by the NI Court Service to act as value adding expert witnesses. This means 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 the market within which your property is located and how these market trends 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 Ireland and a strong research team. Our strong local knowledge is a critical part of the service we provide.
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 can give sound professional 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 local market intelligence we can provide the answers to these questions. We will also be able to advise what vacancy rates are, both currently 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 can give you early advice on alternatives in the market. We can 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.
Property intelligence: putting market data at your service
Market data is vitally important to a rent review. It’s only by having access to the best market information that you’ll be able to achieve the best possible outcome.
As we have the most robust and credible market data, we can provide you with accurate information early in the rent review process, helping you with your budgeting and mitigating 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 identifying lease 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.
Expert witness: because an negotiated outcome is not always possible
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.
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