Argos appointed Gilbert Evans to undertake a rent review of its 14,000 sq ft store in Southside Shopping Centre, Wandsworth and purse the case to arbitration. The prevailing rent was £170,000 per annum and the landlord’s agent had put forward a case for a rental of £367,000 at arbitration, representing a 216% uplift.
Our argument: whether the store should be valued on a zoned or overall basis, the appropriate valuation method and rate psf that should be applied, whether the 100% rack rent or the 80% base rent of the key comparable should be analysed and whether rent free period/capital contributions should be analysed over the first five years of the term or the full length.
Result: The Arbitrator accepted our argument and awarded a rental that was over £115,000 per annum below the landlord’s case on the basis the store should be valued on an overall GIA basis and the acceptance of our analysis of the comparables which were subject to turnover leases.
You can see a case study on our work for Argos in Sutton Coldfield here.