From a routine file review to a back-dated 77% rent increase: a new commercial rent review case study from our team.

The client instructed our Professional Services team to assess a tenant’s upcoming break option on an office property in Borough. What started as a routine lease assessment quickly transformed into a major financial win for our landlord client.

We undertook a thorough review of the lease terms. During this process, we discovered that the landlord missed a historic rent review. Because this review period fell during the peak of the Covid-19 pandemic, our client did not believe a rent increase was possible. However, our market data told a different story.

Maximising Asset Value Through Market Evidence:

Our comprehensive review of local market evidence revealed strong comparable transactions in the Borough area. This data supported a significant uplift in rent. With our client’s approval, we negotiated the historic rent increase. We created a sensible, structured back-rent payment plan to protect the tenant’s cash flow. In exchange, we successfully removed the upcoming tenant break option entirely.

The Results:

Our team’s direct involvement achieved an exceptional outcome for the landlord:

• We secured a 77% increase in the rent passing.

• We eliminated vacancy risk by removing the break option.

• We locked the tenant into the property for a further 7 years of guaranteed regular income.

This commercial rent review case study highlights why landlords must routinely audit their lease terms. Even in challenging economic climates, the right market expertise can unlock hidden value.

For more information on how we can assist with your property portfolio, please contact Simon Isaacs or Henry Ward at Kinney Green.