It’s an ill wind that blows nobody any good and certainly the steep decline in rental values of central London offices has provided many businesses with some shelter from the economic storm which has been raging through the economy over the last two years.
So with such a fall in rental values, no need then for tenants to concern themselves about their forthcoming rent reviews, it’s upward only and central London office rents are lower than five years ago. Similarly landlords’ might as well accept that there will be no increase and indeed should feel grateful that they have a tenant at all.
Not true!
Yes in some locations office rents will be lower than five years ago but on average they are significantly higher than 2004. Thus there is yet considerable scope for landlords to seek uplifts and for tenants to defend.
A sharp lookout is reviewing lease documentation at least nine months before a critical date be it rent review, lease expiry or break option. The latter can be a sunken reef for landlords and tenants. In my experience better foresight achieves better results.
As every sailor knows, riding out a storm is not simply a case of battening down the hatches and hoping for the best but rather keeping a sharp look out for dangers, changes in conditions and seeking shelter.
Find a London Office are experienced in safely navigating the turbulent waters of rent reviews and spotting both hazards and opportunities.
We welcome you aboard for safe passage.
Ramsay
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Ramsay Mason
