We were appointed by Next to undertake a rent review of its 7,000 sq ft unit within The Springs shopping centre in Buxton. The previous passing rental was set at £80,000 per annum and the landlord’s surveyor argued at arbitration for a revised rental of £90,000 per annum.
Our argument: The property was an irregular extended double unit in the scheme off a single frontage, with first floor sales but with issues relating to its limited frontage, significant masked areas, and the predominance of internal columns. 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.
Result: The Arbitrator awarded a revised rental of £82,600 per annum. Evidence provided by the client and our detailed research/arguments relating to configuration and quantum persuaded the Arbitrator to
- Discount the “masked” areas by 50% -twice that of the 25% norm.
- Apply a further allowance of 5% for both the disproportionately high ITZA area( relative to overall sales) and quantum.
- Make a discount equivalent to a three-month rent free period to reflect the commitment to a ten year term.
Until this review, all other contemporary rent reviews had received allowances for frontage/depth or quantum but not both.