Client: Soho Estates - Zoo Bar
The Zoo Bar is located on Bear Street, just off Leicester Square. Comprising a ground floor and basement, and positioned on a pedestrian walkway, it is one of the larger units in this market.
Our landlord and tenant experts originally advised Soho Estates on its rent review on the Zoo Bar in 2001. This went to arbitration and was not settled until May 2006 – a deliberate delaying tactic which we employed to take advantage of changing market conditions at that time. We secured an increase of 15% for this rent review. Soho Estates retained us to negotiate the subsequent rent review.
Our solution
We adopted an aggressive negotiating approach to secure a further rental increase at the second review, by giving notice to the tenant that we once again intended to pursue the review to arbitration. We served the tenant with a Calderbank offer - which would mean that the costs of going to arbitration would need to be covered by the unsuccessful party - and vigorously pushed on with the arbitration process.
Result
With little appetite to go through the arbitration process again, the tenant chose to settle. We secured a further 18% increase - well above the market average - in rent for Soho Estates.
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