|Rents are expressed in terms of Zone A.
So, for example, a shop might have a rental value of £50 per square foot for Zone A. In the same shop, Zone B would be worth £25 per square foot and Zone C £12.50 etc. When the shop is measured so that the exact dimensions of each zone are known, an annual rent can be worked out based on the exact dimensions of the shop and the “going rate” for rent in the street.
Note that in the shop in Diagram1 the floor area in Zone A would not include the pillars. What can and cannot be included when measuring a shop is subject to a set of rules laid down by the Royal Institute of Chartered Surveyors (RICS). The exact Zone A rate will vary depending on where the shop is located. Shops in Churchill Square shopping centre will have a higher Zone A rate than a shop in the North Laine because it has a better retail location.
The Zone A rate in any street is changing all the time as new leases or rent reviews set new precedents.