Rent Reviews Restructuring / re-gearing Lease renewals

We act for a wide range of clients including Trade Counter operators, Industrial & Logistics and Office occupiers as well as the Licensed and Leisure sector.

Using our expert knowledge of the ever-changing markets, case law and statute that affect commercial leases as well as our experience in property acquisition we work to ensure our clients, whether landlord or tenant, make the most of every opportunity to improve the terms of their lease through rent reviews, lease renewals or regears.

Working nationally and in partnership with local experts, we maintain thorough market knowledge by offering the best of local, regional and national advice for our clients.

LEASE ADVISORY – OUR EXPERTISE

Rent Reviews

We identify the terms of your lease where the greatest opportunity and risk lie. We structure our advice and our negotiations to ensure that you achieve the best possible outcome from any rent review.

Lease Renewals

Even the longest of leases will eventually come to an end. Lease expiries can provide both opportunity and risk in equal measure, offering landlords the opportunity to increase rentals or restructure the occupier mix of a development and for tenants, the opportunity to renegotiate onerous terms, extract useful incentives or work in partnership with their landlord to redevelop their premises.

Our approach to lease renewals is always to consider the alternatives from both sides of the transaction and to provide pragmatic solutions which extract value for our clients and preserve the all-important landlord/tenant relationship.

If you would like to discuss your lease, please contact us on 0131 235 2195 or by email at enquiries@carronrealestate.co.uk

Lease Re-gears

Despite a rising market the opportunity still exists to leverage off of break clauses and lease expiries to drive value out of your property portfolio.

Carron Real Estate has a proven track record of leveraging existing lease terms to release hidden value. Working closely with our clients, our approach puts your property at the heart of your business and ensure that it meets your short, medium and long-term requirements. In addition to securing the financial benefits that a re-gear can release, we also look at the softer benefits which are easily overlooked including removal or relaxation of onerous lease clauses.

Lease Advisory Key Pointers

Noted below are some key pointers worth considering for both landlords and tenants.

Time passes quickly when you are running a business. Before you know it even a 10-year lease can be nearing expiry or a break clause fast approaching. Plan ahead, diarise your lease events and give plenty of room for the negotiation process as this can take a long time. Even the most proactive agents require time to do some research before starting negotiations.

Remember, incentives may be available for removing the uncertainty of a lease expiry or break from a lease. Leave it to the last minute and your bargaining power may be all but gone.

Be wary of the timing of notices. Serve a notice even a day late and you can lose your rights to a break, review or even the right to bring a lease to an end.

Correct timing and service of notices are a major pitfall as too is the format of the notice. If the lease says “3 copies on pink paper” then that is exactly what you must provide to be 100% certain of correct service.

Always check the conditions imposed on you when actioning a break option. Some break clauses are conditional upon your performance of certain duties which may include full payment of the rent or redecoration of the premises prior to service of the notice. Plan well ahead and if there are conditions, be sure to meet them as your landlord may not be as accommodating as you think.

As obvious as it may seem, you or your advisor must read your lease before any negotiations begin. No two leases are exactly alike, failure to spot an unusual clause could result in a costly mistake or lost opportunity.

Tenants are often in a strong position to renegotiate lease terms that are onerous or restrictive. If you are happy with your property and are willing to commit to it, your landlord may be willing to agree new, more beneficial terms in return for a longer lease.

As a landlord or tenant, the property will have a value to your business. As a tenant, you should understand the investment value of your continued occupation of the property to your landlord. As a landlord or tenant, to get the best possible deal, it is essential you know the current market incentives and rentals for the property in its locality.

Occupiers and landlords alike should be aware of alternative premises at the outset of any discussions. The assumption that historic occupation equals future occupation should never be made. Break options and lease expiries allow occupiers the opportunity to review the market.

Remember that lease events are an opportunity to start a dialogue. Plan well ahead and draw up a list of wants and desires then start talking and keep talking. Early dialogue will always be slow but a failure to keep pressing can be seen as a lack of interest.