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The IBI Group have recently renewed the lease on 498 square metres of sixth-floor office space from your client on a 15-years FRI lease at
The IBI Group have recently renewed the lease on 498 square metres of sixth-floor office space from your client on a 15-years FRI lease at £107,070 pa (in arrears), equating to £205 per square metre, subject to a rent review at the end of year seven. A twenty-four months rent-free period was agreed but three months is normally standard in this letting market. Your client has asked you to estimate (using the range of methods available and appropriate write off period) the net effective rent?
Frazer-Nash Consulting took 886.3 square metres of office space on the fourth floor from your client on a 10-years FRI lease in 17th Oct 2020 and is currently paying £125,750 per annum in arrears. The tenant has served notice to quit at the end of the lease and you estimate that a twelve months void period is typical under current market conditions for landlords to re-let similar office properties. You are also required to value this property using the hardcore/layer method of valuation, assuming an equivalent yield of 8.25%.
Frazer-Nash Consulting took 886.3 square metres of office space on the fourth floor from your client on a 10-years FRI lease in 17th Oct 2020 and is currently paying £125,750 per annum in arrears. The tenant has served notice to quit at the end of the lease and you estimate that a twelve months void period is typical under current market conditions for landlords to re-let similar office properties. You are also required to value this property using the hardcore/layer method of valuation, assuming an equivalent yield of 8.25%.
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