SUCCESSFUL ARBITRATION LEADS TO $96,000 IN SAVINGS
With an upcoming expiry date, the landlord had mandated an appraiser to establish the value of the property including the rental value of the premises leased by our client. The report from the appraiser established the rental value of the premises at $11.28 per sq. ft.
Landmark was not in agreement with the conclusion of the report and therefore recommended that the case be submitted to arbitration in accordance with the terms and conditions of the option to renew clause of the lease agreement.
It was agreed by the landlord and Landmark/client to mandate another appraisal firm. The cost of the report was to be shared 50-50 between the parties. The conclusion of appraisal firm’s report would be binding upon the parties.
The appraisal report provided by the appraisal firm established the rental value of the premises at $8.75 net per sq. ft. The difference between the initial landlord’s proposal and the final rate provided considerable savings to our client, totaling $96,000 over the renewal term of 5 years.