Landlords…..take advice before agreeing lease renewals

In several areas around the Thames Valley, there is an acute shortage of industrial warehouse units. In these uncertain times, many tenants are choosing to stay in their current premises until the economic market is more stable. This means that they are entering into lease renewal negotiations with their Landlord.

It is very easy for a Landlord to be too hasty to accept an increase in rent without taking advice from commercial agents, often a rise in rent of circa 10% seems like a good increase.  However, leases that were signed in recessionary times are now coming to an end. Some industrial rents in the High Wycombe area that were signed at circa £4 – £5 per sq ft are now being let around £9.50 – £9.95 per sq ft, so it is easy to see how judging your new rent based only on the percentage increase can be financially dangerous.