Taking Professional Advice Should Always Pay a Dividend

In commercial property, the smallest detail can have the biggest financial consequences. And sometimes, the difference between a good result and a great one comes down to asking the right questions at the right time.

Ashurst Real Estate recently demonstrated exactly why specialist property advice matters when representing a tenant in a rent review of a small industrial estate comprising five units, occupied by 2 separate leases, with a third lease demising the communal car park and access provisions.

At first glance, it looked straightforward. The landlord and tenant were the same parties across the leases, and the terms were virtually identical. Only the rents differed.

But there was a catch.

The overlooked detail that changed the outlook!

The two leases covering the industrial units contained conventional rent review provisions, requiring each property to be valued independently of each other on the review date, as if being separately let in open-market, arm’s-length transactions.

Yet the car park and common areas were held under a third lease.

The industrial units had no dedicated, formal parking provisions of their own; only a right to pass over and use the car park held under the separate lease.

The car park was a completely separate property controlled by a hyperthetical 3rd party.

So how is the value of an industrial property affected when it has no dedicated on-site parking provision?

Ashurst Real Estate argued that the implications were significant.

The issue highlighted a wider problem that can arise in commercial property transactions. Once the commercial terms have been agreed, surveyors and agents can find themselves increasingly removed from the process as solicitors take over the drafting and completion of the legal documentation.

That division of responsibility is understandable. But when legal structures are created without sufficient input from the property professionals who understand how a building works in practice, important commercial consequences can be overlooked.

Perhaps there was a sound legal reason for the original decision to divide the estate into three separate leases. But had the implications for future rent reviews been properly considered by a surveyor or agent at the time, the potential consequences might have been identified.

And that is where professional collaboration can really pay off.

The result? A substantially better outcome for Ashurst Real Estate’s tenant client as we successfully negotiated a 46% discount to the landlord’s originally proposed increase.

The case is a timely reminder that rent reviews are not simply about comparing headline rents and quoting market evidence. They require a detailed understanding of the lease, the property, the rights enjoyed by the occupier and the practical realities that influence value.

It also demonstrates why the right advice should not be confined to a single stage of a transaction.

The lesson: collaborate early, protect value and avoid costly surprises.

Commercial property works best when legal advisers, surveyors and agents work together — not in silos.

A joined-up approach from the outset can help identify potential problems before they become embedded in legal documentation, protect a client's negotiating position and avoid disputes or financial consequences further down the line.

At Ashurst Real Estate, we believe good property advice should do more than identify problems. It should uncover opportunities, challenge assumptions and deliver tangible value.

Because taking professional advice should not simply be an expense. Done properly, it should pay a dividend.

Need advice on a commercial property rent review?

Contact Ashurst Real Estate on 020 7519 4117 or visit ashurstre.london to find out how specialist property advice can help protect your interests and improve your outcome.