A landlord just turned down a national blue-chip tenant for a start-up convenience operator — for an extra £8,000 a year.
5,500 sq ft high-street unit. Two identical offers, except rent. We advised the safer covenant. They chased the extra cash.
£8k sounds nice… until there’s a default, void period, rates liability, and a 6–12 month re-let.
Too many landlords are taking disproportionate tenant risk for tiny marginal gains.
Yield is everything. Covenant strength matters.