Client: Redstone
IT and communications group, Redstone PLC, occupy an 36,000 sq ft head office on Great Eastern Street, close to Old Street on the fringe of the City. It asked our landlord & tenant experts to negotiate its rent review; the landlord had proposed a £40,000 pa increase in rent to £690,000 pa.
Our solution
Our first task was to undertake a detailed inspection of the internal specification and lease terms. We illustrated a number of differences between our observations and the landlords’, including: - we calculated a smaller floor area, by discounting a large toilet block in the centre of one of the floors
- parts of the building were triangular in shape which detracts from the value of the property
- the specification of Redstone’s office was lower than those illustrated by his comparable evidence, particularly in relation to double glazing and raised floors
- there were issues in the lease that benefited the tenant which we brought to the landlord’s attention
Result
We negotiated an increase of only £10,000 pa, saving the client £150,000 over five years and achieving a rent below what we considered the rental value to be.
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