Retail rent reviews often require a more detailed analysis than simply comparing annual rents. Shop configuration, frontage, depth, pitch and lease terms can materially affect value.
Retail zoning and ITZA
Many high-street shops are analysed using zoning, converting different parts of the sales area into a Zone A equivalent. ITZA is an analytical convention, not a valuation answer in itself. Read our detailed ITZA guide.
Location and pitch
Prime pitch, footfall, neighbouring occupiers, visibility and the character of the retailing location can affect rental tone. Evidence from a superficially similar shop may need substantial adjustment if it occupies a different pitch.
Lease terms and incentives
Lease length, breaks, rent-free periods, repairing obligations and permitted use should be understood before a transaction is treated as comparable.
Upper floors, basements and ancillary space
Non-sales areas normally require separate consideration. Their value depends on usefulness, access and local market practice.
What should landlords and tenants check?
Confirm measured areas, identify the relevant retail evidence, understand the zoning analysis and check whether tenant improvements or restrictive lease provisions affect the hypothetical letting.