Client: ATS Euromaster
ATS Euromaster occupies four floors of a large office development in Edgbaston. Following a review of its accommodation requirements, it relocated some employees to one of their new headquarters in Aston, leaving an outstanding rent review at No.1 Hagley Road for which the landlord was proposing an uplift of nearly 25%. As commercial property advisors to ATS Euromaster, our objective was to negotiate with the landlord to limit ATS’s financial liabilities.
Solution
The key to negotiating this review was comparable evidence. As one of only a few large, good quality office developments in the Edgbaston area, there were only a handful of new recent large comparable lettings, lease renewals and rent reviews. Our team proactively wrote to a number tenants within a certain radius of the property to ascertain specific details about other recent rental transactions, which proved crucial during negotiations.
The results
Our negotiations concluded an agreed rent at a much lower rent roll than proposed by the landlord for ATS Euromaster, providing a much lower uplift of circa 11%. This equated to a saving from the landlord’s initial rental offer in excess of £278,000 net over the five years of the term.
In addition, one of the floors was sublet to a legal firm and the proportional increase was passed to them subject to prior agreement, in order that the review of the head lease and sublease ‘dovetailed’ with each other.
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