Crown Street Surgery receives a substantial uplift in pharmacy rent following their pharmacy lease renewal.
Crown Street Surgery required a new pharmacy lease to be put in place between themselves (the landlords) and their pharmacy tenant, due to the expiry of the existing lease. GP Surveyors had previously undertaken several successful notional rent reviews for the surgery, the first being in 2005, so naturally, we were the surgeries first port of call. Following discussions with their Client Manager, the surgery instructed GP Surveyors to undertake their pharmacy lease renewal.
Crown Street Surgery is a thriving practice based in purpose-built premises located in Swinton town centre, Mexborough and the pharmacy is integrated within the practice premises. The surgeries pharmacy lease expired in 2017 after the 21-year term came to an end.
Clare Kersey one of our highly experienced Senior Surveyor and RICS Registered Valuer was allocated Crown Street Surgeries case. Clare visited the surgery where she met Sarah Caddick, the Practice Manager, and carried out a full survey of the pharmacy. Having carried out her survey and discussed the required terms of the new lease with the practice, Clare completed a thorough analysis of the existing lease.
Once the lease had been analysed, Clare performed a search of our extensive database of comparable rental evidence to establish the current market rent of the pharmacy. Clare then contacted the pharmacy’s representatives to discuss the terms of the lease and the rent.
The first stage of negotiations then began and the pharmacy’s representatives were presented with Clare’s case for an increase in rent, including our comparable pharmacy rental evidence.
Following protracted negotiations with the pharmacy representative, common ground could not be agreed upon concerning the level of rent. Unfortunately, on this occasion, a solicitor had to be instructed to serve a Section 25 Notice* to the pharmacy.
*A Section 25 Notice is named after the section in the Landlord & Tenant Act 1954 (LTA) that sets out the information (in a notice) that a Landlord needs to give the Tenant to end a business tenancy.
Fortunately, the 6-month notice period served in the Section 25 Notice broke the impasse and negotiations progressed. Lease terms and rent were agreed upon by all parties and GP Surveyors secured the surgery a fantastic increase in pharmacy rent of 70% above the previous rent.
The surgery was delighted with the outcome of the lease renewal and the uplift in income, Sarah Caddick, Practice Manager concludes;
“Clare Kersey and the team run a very professional and efficient service, despite a long drawn out process the outcome was great and we finally received an amazing increase in the rent from our tenants. We will definitely use GP Surveyors again.”