Jaggard Macland helps BPP challenge a significant rent review increase. When BPP, one of Europe’s leading specialist professional education providers, was confronted by a proposed 70% rent increase on its Abingdon facility, it needed to act to mitigate any impact to business profitability.
When BPP acquired McTimoney Chiropractic College in 2011, it simultaneously expanded into an additional 10,000 sq ft of office accommodation to support its growing business.
The 10 year lease agreement included a rent review provision six years into the firm’s occupancy. But when the landlord’s agents proposed a massive 70% rent increase at rent review time, BPP appointed Jaggard Macland to negotiate a more reasonable rent uplift payable for the remaining lease term.
Jaggard Macland inspected the premises, analysing all lease documentation to determine the precise specification and lease terms to be valued. This delivered a deep understanding of the actual terms to be assumed and which items that could be disregarded when rent review negotiations began in earnest.
Next, Jaggard Macland undertook extensive market research to fully understand the rent levels paid by other occupiers in Abingdon and found the landlord’s agent had focused on superior accommodation when setting its proposed market value rent. This would need to be adjusted to reflect BPP’s actual accommodation.
Following a four month period of discussion, the landlord’s agent accepted their proposal was too high and agreed to a reduction of 69% on their original proposal. This equated to an actual rent saving of over £200,000 for the remainder of the lease term.