Retail Rent Review

Retail rent review turns on zoning and on honest evidence. A shop is valued in Zone A terms — the front zone carrying the highest value, halving back — with allowances for frontage, depth, shape, masking and ancillary accommodation. Get the zoning wrong and every subsequent argument is built on sand.

Retail Rent Review — tenant-side advice from Chris McGarrigle MRICS
3 min readTenant side onlyChris McGarrigle MRICS

Zoning in practice

Standard zone depth is usually 6.1 metres (20 feet) on the high street, though schemes and some locations adopt different conventions. Return frontage, corner positions, irregular shapes, internal steps and columns all require judgement rather than arithmetic — which is where most disputed valuations diverge.

Devaluing the landlord's comparables

A headline rent agreed with twelve months' rent free, a £150,000 contribution and a tenant break at year five is not the same rent as a clean deal at the same figure. Every comparable must be devalued to an effective rent on consistent assumptions before it can be compared at all.

The trading reality

Vacancy rates, scheme footfall, the loss of an anchor, rental auction activity and the pipeline of competing space all bear on open market rent. Evidence of what the pitch can actually sustain is persuasive with arbitrators and experts alike, and I use it routinely.

Common questions

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Chris McGarrigle MRICS, chartered since 1989, acting for occupiers across England, Scotland, Northern Ireland and Ireland.

chris@mcgarrigle.com

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