Fair rent for chip shop?

Any ideas on a fair rent to pay/charge for a chipper? It's app. 600sq feet in a west Dublin suburb on busy feeder road with constant traffic. The shop would need fitting out-it's a shell at present. There's no comparable property nearby to compare it with unfortunately. Any ideas on how to compute would be appreciated indeed.

Try using a competent valuer, as if you do not have the use of one now it will haunt you in a Rent Review in later years. Try getting a rent free period and / or a contribution towards fitting out costs especially if improving the property,

Thanks mercman, but I'm on the other side of the equation....the landlord! I know that the prospective tenants have been keen on this premises for over a decade but it was otherwise engaged. Unfortunately I have had bad experiences of valuers in the area because they keep using the nearest flatpack industrial/commercial/retail park units as a reference for rent per sq foot and it just doesn't compute with what I can get for two lock-up type industrial units already let, ie, I am achieving TWICE what 2 valuers said I should be getting because the frontage and massive passing trade means the tenants are happy to pay over the odds if you will due to increased business. It's because the premises is in a residentially zoned area with no commercial units around it that makes it a bit of a dark horse.

Well, simply enough what was the last passing rent ? what year was it achieved ? and planning use and location ??

murphaph said:

... Unfortunately I have had bad experiences of valuers in the area because they keep using the nearest flatpack industrial/commercial/retail park units as a reference for rent per sq foot and it just doesn't compute with what I can get for two lock-up type industrial units already let, ie, I am achieving TWICE what 2 valuers said I should be getting because the frontage and massive passing trade means the tenants are happy to pay over the odds if you will due to increased business...

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So if they're that keen, try them at three times the bench-mark rate and see what happens.

Can you tie commercial rent-reviews into foot-fall or turn-over?

It was never rented out. It was used by ourselves for our family business. Planning alows retail use at the moment but an application for change of use has been lodged. The prospective tenants have retained an architect at their own expense to do this. We've had quite a bit of interest from other parties but I have a good feeling about these guys.

Is it possible to tie rent-reviews to their turnover? common practice? We don't do it with our other units.

Footfall yes can play a part but not Turnover

What are the practicalities of incorporating footfall in the review calculation? Pardon my ignorance but do you stand outside with a clicker on a saturday afternoon on a set week and then repeat the excercise 5 years later and use the percentage increase in footfall to determine the percentage increase in rent?

You really will have to ask a competent valuer about this. (I am not a valuer, just a Property Investor). There was anumber of years ago where a Major Store in Dulin challenged a Rent Review and the Landlord was able to provide footfall figures on both sides of the road, showing more persons walked on the side of the shop in review than the other side. This is why I mention a proper valuer.

Thanks for your input mercman. Appreciated.