Rent Review in Commercial Leases - Keeping Pace with the Market

Introduction

The dominance of the short-term lease has taken rent review down some different avenues. Indexation of rent will often be affected annually and continues to provide lessons in having a second and third pair of eyes on mathematical formulae in legal drafting.

The move towards turnover rents may seem to lead away from traditional rent review, but in leases of sufficient length a periodic reassessment of base rent may still be required, and the context of a turnover lease may engage some thorny issues as regards assumptions and disregards. The same can be said for inclusive rent arrangements, also more commonly seen.

Familiar questions remain as difficult as ever: what alterations and additions to the property should be rentalised? When should the valuation assume the inclusion of a break clause? General principles of contractual interpretation are often tested to breaking point.

This webinar will highlight the latest case law and issues.

What You Will Learn

This webinar will cover the following:

• Variable rents in the current letting market
• Review of base rent in turnover-rent leases
• Common assumptions and disregards, and their effect
• Recent events and recent case law
• Methods of dispute resolution (expert v arbitrator)

This webinar was recorded on 14th June 2023