As a RICS surveyors we play a crucial role in commercial lease negotiations and rent reviews by providing expert, impartial advice and acting as a skilled negotiator. Their value comes from our deep understanding of market data, legal frameworks, and technical property issues.

Lease Negotiations

We add significant value to a new commercial lease negotiation by going beyond just the headline rent. We help clients understand the full financial and physical implications of a lease agreement. This includes:

• Market Intelligence: We advise on realistic market rents, rent-free periods, and other incentives based on comparable local transactions. This prevents a tenant from overpaying and helps a landlord set a competitive price.
• Property Condition: By conducting a pre-lease assessment or Schedule of Condition, we identify potential issues like structural defects or required repairs. This allows the client to negotiate for these to be fixed before the lease begins or to secure a rent reduction or rent-free period to offset the cost of the work.
• Negotiating Key Clauses: A surveyor helps negotiate critical non-rent clauses, such as break clauses, caps on service charges, and repair obligations. Our expertise ensures these terms are fair and reflect the building’s actual condition.
• Simplifying Complex Language: We simplify complex legal jargon and explain the long-term impact of specific clauses, helping the client make an informed decision.

Rent Reviews

For rent reviews, a RICS surveyor is essential for ensuring the new rent is fair and market-based. Our role involves:

• Valuation and Evidence: We conduct a professional valuation using the RICS “Red Book” standards. This involves inspecting the property, analysing recent comparable transactions, and considering all relevant factors stipulated in the lease agreement to establish a defensible market rent.
• Strategic Advice: They provide strategic advice on the rent review process, including advising on important deadlines and legal notices that, if missed, can lead to significant financial loss.
• Expert Negotiation: We act as a professional intermediary, presenting a well-supported case to the other party’s surveyor. Our negotiation skills and deep market knowledge often lead to an agreed-upon rent without the need for formal dispute resolution.
• Dispute Resolution: In the rare event of a dispute, our surveyors can act as an independent expert or arbitrator, providing an impartial and legally binding determination of the rent, preventing the need for costly court action.

Ultimately, we act as a crucial adviser, ensuring a commercial lease is commercially fair and sustainable for the duration of the agreement. This week we completed a negotiation which secured a Landlord of a retail unit an £8k annual uplift on a 5-year lease, securing an additional £40,000 for the term of the lease and all for a one-off fee!

Have you got any commercial leases or rent reviews you would like us to have oversight of, get in touch and book a discovery call today.