Nicholas & Co. Surveyors Secures a 55% Reduction in Tenants Rent Review Notice

In a recent case, Nicholas & Co. Surveyors were instructed to prepare a Rent Review Valuation and negotiate with the landlord on behalf of the tenant who received a Rent Review Notice of approximately 100% increase of their current rent.

Nicholas & Co. Tenant Client in Wood Green Saw Over 55% Reduction in Their Net Rent Through a Strategic Step-Up Lease

The tenant was at risk of accepting an inflated rental uplift for their upcoming Rent Review, based on the open market rent. Nicholas & Co. Surveyors conducted a thorough investigation and analysis, presenting evidence that the rental value should be significantly lower than the landlord's asking
price.

How did Nicholas & Co. Surveyors achieve this?

Following a site inspection and meticulous due diligence, Nicholas & Co. Surveyors prepared a detailed report of their findings for the client. This report outlined their view on open market rent and included a specific strategy aimed at negotiating a reduction in the landlord's notice.

The industrial property market has increased significantly since the pandemic, with leases signed during that period setting a new rate per square foot across the board due to demand and scarcity of units. While this trend was observed nationwide, it could be argued that lease comparables fromthat time did not necessarily reflect current rental values.

During their due diligence, Nicholas & Co. Surveyors also discovered a pending Compulsory Purchase Order (CPO) for a redevelopment scheme that included the client’s unit. This finding further favoured the client's position as the open market letting of the unit on a hypothetical lease term was significantly affected.

In addition to successfully arguing for a lower rental valuation, Nicholas & Co. Surveyors went a step further by engineering a step rent solution to help the client manage the cost of rental increases. This approach resulted in a manageable uplift for the client, representing a remarkable 55% reduction from the landlord's original rent review notice.

Nicholas Zorpides, Founder of Nicholas & Co. Surveyors, says, "After reviewing the location, size, and quality of the property, it was clear that the landlord's valuation was not reflective of the true market conditions. Our detailed analysis and comparison assessment of similar properties coupled with the CPO element demonstrated that a lower valuation was appropriate and fair."

As such, Nicholas & Co. Surveyors successfully agreed to a lower rental increase on behalf of the tenant, preventing an inflated rental increase and helping their client's business to continue to thrive.

The client added, “We used Nicholas & Co. to assist with our recent rent review and were very happy with the services provided. Good communication and negotiations with a big saving in rent achieved. Would highly recommend.”

Nicholas & Co. Surveyors specialise in rent review valuations and negotiation across London and the Southeast of England. Their commitment to professionalism, accuracy, and attention to detail guarantees that clients receive quality service and expertise. Their professional and commercial valuation services provide a valuable resource for business owners and investors alike making informed decisions on property.

If you’re interested in how Nicholas & Co. Surveyors can help you, please contact us today.

Telephone: +44 203 633 5370 / +44 1992 939 201

E-Mail: enquiry@nicholassurveyors.com