Dundrum Town Centre
Bannon were appointed as joint agents to undertake the initial rent reviews in Dundrum Town Centre in 2010 and then again in 2015. The instruction was across the entire centre which encompassed approximately 120 units on all three levels of the shopping centre together with external accommodation in Dundrum Retail & Office Park as well as the Millpond area.
In undertaking this extensive instruction for the leading retail asset within the Country, Bannon were involved from the outset, establishing a strategy for the review process which included assessing the relative strengths of the different locations and levels within the centre, benchmarked from what were considered the prime areas and reviewing the rent review parameters contained within each lease.
Using this analysis, the Rent Review team were able to make assessments based upon the transactional evidence as to the appropriate Zone A rate of rent applicable to each section of the Town Centre which presented a credible position upon which to base negotiations.
During the process both in 2010 where a base line level was achieved (first rent reviews) and the subsequent 2015 reviews Bannon undertook negotiations with numerous occupiers and their representatives seeking to reach negotiated settlements where possible and representing the Landlord in Arbitration hearings where Third Party adjudication was required (approx. 33% of Units).
It should be noted that one of the main challenges faced during the 2010 rent reviews was the debate surrounding the impact of Open Market Rent Reviews for retail accommodation following the introduction of new legislation from February 2010 effectively banning upward only rent review clauses and what the impact of same was on rental levels for legacy upward only leases.
In partaking in this instruction Bannon achieved a significant increase in the passing rent with an average uplift in rent of 20% being realised across the centre in 2010 (the IPD recorded -2% for the same period) and established tones of Zone A in the varying sectors of the scheme. The 2015 process was undertaken in more challenging circumstances however a further uplift in the order 8% across the centre was achieved through a mix of negotiation and Arbitration procedures.