Gilbert Evans was appointed by the Leicester Square Burger King franchisee to undertake the rent review of its 5,000 sq ft unit. The site is highly prominent on the north-eastern corner of Leicester Square , close to the underground station. The property has a strong visual appeal and the location reputably experiences one of the highest volumes of pedestrian flow in Europe.
The valuation of the unit was relatively complex due to:
· The awkward shape of the unit and changes of level within the sales areas.
· New evidence from a letting, the first open market transaction to take place in Leicester Square for over 10 years, that showed an increase of 58% in the passing rent for the site from five years before.
· The site’s prominence.
There were a significant number of points to be argued and many potential pitfalls.
We presented a robust and credible argument, backed up by strong attention to detail and a consistent approach, persuading the landlord’s agent to concede on key points. The ultimate settlement depended on resolving a number of issues:
· Our commissioning of a digitised survey to amend the quantum of the ancillary and raised sales areas, resulting in an 8% reduction in the overall weighted floor area originally quoted.
· A favourable analysis of the key letting, adjusting for size and position relative to our client’s property.
· No specific allowance for prominence.
· The level of increase seen on earlier rent reviews in the square effective before the “letting”
The final agreement resulted in:
· An increase in the passing rent of less than 30%.
· A saving to the client of over 35%, equating to over £430,000 on the rent initially quoted.