What drives value here
- Zone A rate, frontage and depth, and the correct zoning method for the unit shape
- Return frontage, corner positions and masked or set-back frontages
- Ancillary, basement and upper-floor space and the correct devaluation ratios
- Rent-free periods, capital contributions, stepped rents and break rights behind headline deals
- Footfall, vacancy rate and anchor tenant changes in the pitch since the last event
- Service charge, insurance and business rates as part of total occupancy cost
Rent reviews on shops
Most retail leases are upward-only, so a review can only cost you money. The evidence that fixes the figure is normally a handful of nearby lettings, and almost all of them need adjusting before they mean anything: a headline £75 Zone A supported by twelve months rent free and a £60,000 contribution is not a £75 Zone A.
Landlord surveyors quote headlines. The work is establishing effective rents, testing whether the comparables are genuinely comparable in pitch and configuration, and putting the resulting Zone A in front of them with the arithmetic attached.
Lease renewals and the 1954 Act
A protected retail tenancy renews on the terms the court would order — which is not the same as the terms the landlord's draft lease proposes. Term length, break rights, repairing obligation, service charge caps and the interim rent all move the deal, often by more than the headline rent does.
Section 25 and Section 26 notices carry hard deadlines. On the high street where trade has moved against you, a renewal is frequently the best chance in a decade to reset the rent downwards and shorten the commitment.
Exit and dilapidations
Retail schedules are routinely overstated: shopfit removal, full redecoration and reinstatement claimed as of right when the covenant and the Section 18(1) cap say otherwise. If the landlord is re-letting the unit to another retailer who will strip it out anyway, the loss is not the cost of the works.
Common questions
Guides for retail
- Retail Lease RenewalRetail lease renewal advice for shop, leisure and F&B tenants: rent, term, break rights, service charge and portfolio strategy on the high street.
- Retail Rent ReviewRetail rent reviews for shop occupiers: Zone A analysis, devaluing incentives, turnover rents, and negotiating on high streets and in schemes.
- Retail PropertyRetail property advice for shop occupiers: rent reviews, lease renewals, zoning and comparable evidence, portfolio strategy and exit planning.
- High Street Rental AuctionsHow high street rental auctions work under the Levelling-up and Regeneration Act: vacancy rules, notices, the auction tenancy and what it means.
- Commercial Dilapidations SurveyorDilapidations claims challenged and settled for tenants: interim and terminal schedules, Section 18 cap, diminution valuation and Protocol compliance.
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