Client: Soho Estates - Kensington
Our client owns the freehold of a multi-tenanted office building located on Kensington High Street at the junction with Addison Street. Three of the six floors were subject to rent reviews throughout 2007.
The rents prior to review equated to circa £25.00 psf and much of the evidence in and around the building showed similar rental levels. The parties were also to assume a term of 10 years at rent review, which considering the floors measured circa 3,500 sq ft each, would have been considered onerous for which a rental discount should apply.
Our solution
Despite the lack of evidence and onerous lease terms by relying on evidence closer to Hammersmith, we persuaded the tenant’s agent to agree to rental increases on all three floors as at January, June and September 2007, showing greater increases throughout the year to reflect improving market conditions.
Result
Rental increases of 3%, 10% and 12.5% were achieved which given the lack of evidence and onerous leases and conditions was a good result. These agreements have subsequently been referred to in relation to the two other floors in the building where lease renewals are currently ongoing.
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