Commercial rental price changes over the years

[Henry-F]

Try as I might I can't find any tables showing relative changes in rental prices over the years.

I've got a couple of Midlands based industrial units where the lease comes to an end shortly and I need to work out what a suitable rent moving forwards might be. I know what rents have been over the past 15 years or so and was expecting to be able to find some sort of year on year table showing increases or decreases in the case of the recession years.

I've got an idea what would be sensible solution but one of my tenants has some rather optimistic views to the contrary

I'm pretty easy going and I think sensible, I don't want to end up costing us both a load of money in professional fees or arbitration so would much rather negotiate amicably. I do seem to have attracted very large organisations as tenants so the element of decency is probably lost on them!

Thanks in advance.

Henry

[loafer123]

The data you seek comes from IPD but is subscription only.

However, an index isn't the right answer as it gives an average over a wide variety of sizes, locations, ages and types.

What you need are examples of recent lettings on similar units as comparable evidence, which you can share as your justification.

In reality, your best bet will be to get a rent review surveyor onto it...the ship was lost for a ha'penneth of tar is an apt metaphor - a professional will get a better result than you will.

[soxboy]

As above, most published information is very generic and of little or no use other than for writing investment reports.

For your purposes I would ask a reputable Landlord & Tenant surveyor to give it the once over. He should be able to tell you very quickly what chance you stand of getting an uplift at review, having had regard to relevant local evidence.

[Henry-F]

Thanks for the advice chaps.

I just wanted a fag packet guide to see if my thoughts were fair, but I shall seek professional advice as. You suggest.

Henry

[TwistingMyMelon]

Could even be that they advise that the going rate is probably less than the tenants are paying!

I'm looking at commercial property now that long term tenants are moving out of and with some the new rents (not including sweetener 1st year deals) are less than the tenants that moved out were paying by a decent margin

[JQ]

. . . and don't forget to sort out the dilapidations claim, which a Building Surveyor can advise on, which should be forming part of the negotiation.

[Leedssurveyor]

The information you seek is listed on Costar Focus now CoStar Suite & Go.

However Industrial units anywhere above London are fairly easy to have a guess at;

Smaller style units sub 1,5000 sq ft decent condition are always £5-6 psf
Upwards of that you are looking anywhere sub £4 as low as £2 psf for larger Grade B/C style units.
and 50p for chicken shed types.

All dependent on vacant stock in the area, service charge levels of the estate , demand etc.

[loafer123]

That is, frankly, terrible advice.

You have no idea on the location, nature, quality, size or context of the property.

[JQ]

Leedssurveyor said:

The information you seek is listed on Costar Focus now CoStar Suite & Go.

However Industrial units anywhere above London are fairly easy to have a guess at;

Smaller style units sub 1,5000 sq ft decent condition are always £5-6 psf
Upwards of that you are looking anywhere sub £4 as low as £2 psf for larger Grade B/C style units.
and 50p for chicken shed types.

All dependent on vacant stock in the area, service charge levels of the estate , demand etc.

Is that a serious response?