FHP INSTRUCTED ON NORTH NOTTS RENT REVIEWS

FHP News

 Alastair Fearn who is primarily based at the Nottingham office of FHP has been appointed to act on behalf of 2 tenants in two reviews on warehousing premises located North Nottinghamshire.

The first review is on behalf of a tenant whose property is located on Crown Farm Industrial Estate, the former Enterprise Zone to the east of Mansfield. The unit extends to approximately 40,000 ft² and has a passing rent of £140,000 per annum. In this case the Landlord is seeking to gain a rental increase of approximately 20% and Alastair Fearn has been tasked with negating this increase.

The second review concerns warehousing premises on the County Estate close to Junction 28 of the M1 Motorway. This is the first review in a 10 year lease and the subject property extends to approximately 10,000 ft². The Landlord is seeking to increase the rent by approximately 35%. In this case the matter has been referred to a third party and an expert has been appointed, submissions are now being prepared for the experts consideration.

Alastair Fearn commented:

The increase in activity in the commercial marketing means that rent reviews are now becoming increasingly important as new lettings are creating evidence which Landlords are using to increase rent,. On the other foot tenants are of course looking to keep their overheads as low as possible to negate rent increases.

It is a common misconception at the moment that there is not scope for rental increases and it is really a case of market knowledge to prove or disprove whether a rent increase is justified.

In the case of the Crown Farm Unit referred to above I was approached because of my knowledge of recent transactions in the Mansfield area which puts me in a strong position to illustrate to the Landlord where the true market value of the property lies. On a building of this size pence do count so it is important to have a thorough knowledge of the area and the market.

With regard to the rent review at Huthwate we have been unable to agree with the Landlord a suitable agreement so we have referred the matter to an independent expert appointed by the RICS and submissions are being prepared.

Should you have a rent review or lease renewal coming up then it is important to gain professional advice to ensure that most appropriate terms are agreed. For a free initial consultation please contact Alastair Fearn on 0115 841 3913 or alastair@fhp.co.uk.