We were appointed by River Island to prepare an Expert Witness Report in connection with the lease renewal on its 7,000 sq ft unit in the Lion Walk Shopping Centre in Colchester that had a current passing rental set at £270,000 per annum.
Our argument: The property was an irregular unit in an ‘off prime’ area the scheme with basement ancillary accommodation and but with issues relating to its configuration, various frontages and location. It was our contention that the physical nature of the store was such that it suffered from various disabilities which all required to be reflected in its rental value. It was our contention that rental values in the location had declined dramatically since the current passing was set five years earlier.
Result: The Arbitrator awarded a revised rental of £235,000 per annum. Our detailed research and arguments relating to configuration and location persuaded the Arbitrator to:
- Maintain a favourable method of zoning
- Apply a further allowance of 15% for the disproportionately high ITZA area ( relative to overall sales)
- Not to make any uplift in rent for a term of 5 years.Our approach produced a rental that was 12% lower than that which was being paid prior to expiry, thus enabling the client to benefit from a rental saving of £35,000 per annum.
Our approach produced a rental that was 12% lower than that which was being paid prior to expiry, thus enabling the client to benefit from a rental saving that was 12% lower than that which was being paid prior to expiry, thus enabling the client to benefit from a rental saving of £35,000 per annum.
