Market Rent Flashcards
Could you have analysed on a £ per sq ft basis?
Yes, but it would make it hard to compare units to each other.
Why did you use NE?
The next lease event was an open market rent review
Could you have analysed on NE and headline?
How do you work out net effective?
Multiply the annual rent by the term certain to get the total rent.
Subtract the value of any incentives, like rent-free periods or contributions (don’t include 3 months for fit out).
Divide the adjusted total rent by the lease term to get the net effective rent per year.
How does an assignment compare to an open market letting as evidence?
less reliable as the rent cannot change.
What was the premium for the Chipotle letting?
How did you account for the difficult configuration and hard frontage?
I added a 5% reduction in the rent
Do you know how significant the discount was at emirates?
Were all comps analysed on NE basis?
yes - two didn’t have rent free as not open market.
How can this short of a term be used as a comparable?
it was based on a 10 year term
Did you make any adjustments to reflect a short let?
Why did you add the 2.5% premium?
standard practice in the area
It is noted in the appendix that the property has stairs on the ground floor sales. Did you account for this? If so, why not?
From speaking with agents in the area and after consideration, I felt the steps were so minimal for a reduction
