Are you an office occupier and have a Bath office Rent review coming up ** don’t panic**.
Back in 2013 and 2014 it was not unusual to agree lease terms at £10-£12psf with rent free periods and capital contributions on office property in Bath.
5 years on and occupiers are encountering their first Bath office rent review with landlords seeking significant increases in rent from those agreed 5 years ago.
Agents acting for landlords will say that Bath office rents have risen massively over the last 5 years in large part due to the lack of supply. It is true that Bath agents are achieving headline rents of £22-£27per square foot on space that was leased at half that 5 years ago. But this does not necessarily mean that your office rent should double at review.
- Your office and lease terms will likely be different to “comparables”.
- Agents talk about headline rents but it’s the adjusted net effective rents, and hypothetical review and lease terms that count.
My advice? Pay a professional to handle the rent review for you. They can advise on market rent and on strategies to keep the rent down.