We were instructed to advise a landlord on a complex lease renewal for a retail unit in central Truro. Following the COVID-19 pandemic, the retail market in the area had experienced a significant decline in rental values. The tenant was requesting a considerable rent reduction and was contemplating vacating the premises. Our objective was to secure tenant retention, agree a fair market rent, and protect our client’s long-term income in a challenging environment.
The property comprised a well-positioned high street retail unit with an established tenant in place. However, the impact of the pandemic had led to reduced footfall, increased vacancies, and weaker tenant demand across Truro, all of which contributed to downward pressure on rents.
The tenant entered into negotiations with a strong stance, citing the softened market and signalling a willingness to vacate unless terms were revised. This posed a key challenge for our client, who needed to balance income retention with the risk of a potentially prolonged void.
We carried out a detailed review of the local retail market and provided the landlord with clear evidence of prevailing rental levels. This market insight formed the basis of a realistic and commercially informed negotiation strategy.
By engaging constructively with the tenant and demonstrating flexibility, we helped both parties arrive at an agreement that reflected market realities while preserving occupation and avoiding the costs and uncertainty of a vacancy.
A successful lease renewal was concluded, ensuring continued tenant occupation on updated terms that reflected current market conditions. While the revised rent was lower than the previous passing rent, our approach ensured income continuity, avoided a potentially lengthy void, and protected the longer-term value of the asset.
This case highlights how our expert advice, local market knowledge, and strategic approach can help landlords navigate lease renewals in the evolving retail landscape.
Our experienced team is ready to assist with unparalleled regional advice.
