A Brief Guide Rent Reviews
Rent Reviews are the periodic adjustment of commercial rents to the current market level at the date of review. They take place at the intervals agreed in the Rent Review clause set out in the commercial lease, usually between every three to five years.
The review clause will also specify the method of review together with the assumptions and disregards to be made when valuing the premises for the purposes of the rent review. In addition a timetable may be specified with a referral procedure if the parties are unable to reach a negotiated settlement.
Establishing the “Market Rent” is based on numerous and varied factors including the size and type of property, the terms of the lease and the comparable evidence. In this respect it is crucially important that the transactional evidence is analysed correctly with appropriate adjustments to reflect the differences between the comparable and the subject unit. Our knowledge, experience and negotiating skills are therefore crucially important and the failure to be professionally represented can result in a significant financial loss.
As a professional firm of surveyors with over 40 years experience in this field you can be assured we will achieve the best possible result on your behalf.