Ask-re Pops Rent Review Bubble for Intertek Landlord

CLIENT BRIEF

All businesses are impacted by rising property costs and the demanded 21.5% increase in rent at Intertek’s premises in Knowlhill, Milton Keynes was no different. Intertek instructed ask-re to act on their behalf on this rent review at their offices & warehouse premises comprising approximately 41,400 sq ft. There were a number of complicated issues to be dealt with not just for the rent hike, and the client was being threatened with Arbitration after a run of increases on their Estate.

OUR PROFESSIONAL APPROACH

The real challenge in negotiating this rent review was the buildings Landlord who took a very bullish attitude towards the rent review and the market evidence. From the outset our client faced a potential increase of £75,000 per annum more than the current passing rent. The review required us to explore exhaustively all the angles. Through negotiation we were able to reduce the initial floor areas put forward by the Landlord. The next significant points of negotiation were the unusual lease terms and the local market evidence.

Following this, we were able to reduce the rental increase further through hard negotiation around the merits, or otherwise, the accommodation compared to other buildings and locations in its proximity.

THE SUCCESS STORY

Our team finally agreed the revised rent at a nil increase – 0% compared to 21.5%! This represented tremendous value for our client, particularly when considering onward running costs for the property in these difficult market conditions.

THE VERDICT

 “We appointed ask-re as we were aware of their successful track record and assertive but professional reputation for fighting the corner for occupiers such as ourselves. Property costs are always a worry so I was extremely pleased when ask-re was able to give us a saving of £375,000 over 5 years. It’s simply Fantastic!” Tracey Roskell – Finance Director, Intertek