2 Lease Renewals at Carters Lane, Milton Keynes

Kirkby Diamond were instructed by the landlord, who are one of the largest real estate investment managers in Europe, to negotiate two lease renewals with existing tenants. After inspecting the units and completing an appraisal and rental valuation it was evident that both tenants were paying historic rents that were well under the current market value for industrial units of similar size across Milton Keynes.

Result

A strategy was recommended to our clients and negotiations with the tenants needed to be sympathetic given the current impacts of Covid 19. But they also needed to be accurate in terms of achieving a fair market rent for our client. Both renewals required different approaches, one unit had historic issues with leaking valley gutters in the roof and a higher rent was agreed in return for a landlords capital contribution for roof repairs. This helped the tenant but also added significant rental and capital value to our clients portfolio. On average rental increases of approximately 25% were achieved across both lease renewals.