Altus Group has advised CBRE Gi in respect of a popular trade park in North London totalling 11 units. Instructions were to negotiate 6 rent reviews and lease renewals where the passing rents were significantly less than the recent open market evidence that had been created on the park.
Altus Group advised the client in respect of rental values and length of leases to be negotiated. The negotiations occurred over a 2 year period, successfully resulting in significant rental increases and in line with the open market evidence. Whilst third party and court applications had to be made in cases where agreement was difficult, negotiated settlements were reached in all cases. The rental increase over the 5 year review periods totalled £834,655 averaging at an annual increase of 29% and up to 49% for one particular negotiation. For the lease renewals, 10 year leases without break options were secured despite the tenants’ contention for 5 year terms.