In this week’s property surveying blog post, we are going to be discussing rent reviews and lease renewals, and in particular, scenarios that our surveyors have noted over the years.
One of the most common observations that our surveyors have noted over the years is that in many cases, the ITZA which means “are in terms of Zone A”, can be significantly under measured, resulting in a far lower per calendar rental figure for the landlord.
In many cases, the landlord will be unaware of this, and it will represent a pleasant surprise for them at the lease renewal or rent review stages, and likewise, many tenants will be unaware of this, with it representing a nasty surprise.
In making this observation, in many cases the surveyor will inspect the property, carefully and comprehensively, and ultimately could establish that the areas have been under measured.
In many cases, a tenant’s shop fit out will be elaborate and suiting to their requirements, e.g. if it is a retail store, it could have fitted shelves, or likewise could have fitted panels, allowing for clothing racks, shelving units, or generally just a pleasant decorative display.
While these are perfectly fine and allowable, in many cases, they may have actually stepped away from the flank walls of the property, with there being valuable wasted space behind them.
In many cases, the shop fittings will sit a couple of hundred millimeters away from the wall, enabling for a neat finish to the tenant’s property and save any requirement of chasing fixtures into the wall itself, which can often be more hassle than it’s worth.
Whilst these may be of benefit to the tenant, they are removing valuable rental space that the freeholder can rely upon, and therefore, it is imperative that the surveyor accommodates themselves with the lay of the land on site, to ensure that they are fully abreast of these.
Here at Stokemont, we have seen this on multiple different properties, from your High Street stationers, to your High Street clothing retailers, and even to restaurants and offices.
If you would like to discuss your rent reviews and lease renewals with our team of surveyors here at Stokemont, give us a call today, and we will be more than happy to assist.