Turnover Rents - The Complexities Explored
As the high street continues to struggle, retail tenants increasingly seek flexible lease terms.
Turnover based rent is attractive for tenants with the landlord sharing the risk by agreeing to take a share of their turnover instead of a fixed rent. It offers flexibility when business turns down, while incentivising the landlord to promote and maintain the development. For the landlord it reduces the risk of tenant insolvency and rental voids.
But working through the implications in the lease drafting can be a headache, raising issues on information capture, underletting restrictions and the operation of break clauses, to name a few.
Anyone who deals with retail lettings, whether for landlords or tenants, will benefit from this webinar. It will also consider how well turnover rents work in a world of increasing sophistication in online retail models.
What You Will Learn
This webinar will cover the following:
- Calculation of turnover rent
- Ability to revert to an open market rent
- Implications for alienation
- Impact on rent review
- Impact on break options
- Relevance of use restrictions
This webinar was recorded on 7th May 2020