Lowie

Founded in 2002, Lowie is a British sustainable fashion brand blending a love of traditional handicraft techniques, heritage elements and an unwavering appreciation for the environment. Since opening in 2021, Lowie’s flagship store in Herne Hill has been a beacon of colour in this creative corner of London.

Lowie’s landlord served a rent review notice demanding a rent increase of 30%, this on top of the new April 1st business rates doubling, the end of retail business rates relief and the new costly employment laws; a very expensive collision of costs and a cruel blow for any independent, small business. Our client asked us to settle the rent review with minimal increase.

Rent reviews, are common practice within the UK’s commercial leasing system, and normally occur every five years from the start of the lease. The most common methodology for calculating the revised rent is on an ‘Open Market Rent’ basis, although sometimes the calculation can be an index-linked increase, such as CPI (Consumer Price Index). Lowie’s rent was to be reviewed on the open market basis, and our job was an exercise in absolute due diligence, analysing the new rent demand within the notice, and every piece of comparable evidence that it was based on. Critical for rental valuation accuracy is the precise measurement of the floor area the rent is based on, undertaken in accordance with RICS (Royal Institution of Chartered Surveyors) Code of Measuring Practice.

Not only was our client’s premises measured and analysed, but 5 other nearby premises that the landlord’s agent had proffered as comparable evidence to support the rental increase. This research revealed a combination that Lowie’s premises had not been measured accurately and therefore the estimated rental value was grossly exaggerated, and that the comparable properties had more beneficial characteristics than our client’s property, therefore we could apply the industry standard process of discounting as part of our negotiation directly with the landlord’s agent, resulting in a mutually agreed settlement, with an increase of just 3% for the new annual rent; a huge saving on the initial rent review notice. A highly successful and sustainable outcome.

Tenant representative Lease Advisory, rent review expertise, retail property expertise, lease analysis, property market knowledge, property measurement & zoning, comparable analysis, commercial terms negotiation & tactics, transaction project management.