Eighteen months ago I was looking for a unit in London’s Kings Road. Back then the cost of the lease with the rent was far too prohibitive. A similar property has now become available and the same agent has contacted me. I haven’t yet expressed an interest because I need some advise on how hard I should negotiate. Can you offer me some pointers?
The property market, like virtually all others has been affected by the global credit crunch and as such in many instances the occupiers hand has been strengthened. Having said that prime retail locations such as Kings Road will always hold up better than more secondary locations. I would recommend you employ a suitably qualified property surveyor who specialises in retail. Although this will cost you a fee it will ensure you get the right advice and he/she will negotiate on your behalf to achieve the best deal possible.
It may be worth considering incentivising them whereby their fee increases the more the rent decreases below what the landlord is asking for. I would suggest you contact the Royal Institution of Chartered Surveyors (www.rics.org.uk) who provide a list of registered agents. Always check what their recent experience has been in the particular market/location you are looking at.