Turnover Rents - Simple in Theory, Complex in Practice
The idea that instead of charging a fixed rent, a landlord shares in a retail tenant's risk by agreeing to take a share of their turnover, has many attractions. For the tenant 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.
This webinar provides an overview of the topic, and considers how well turnover rents work in a world where many tenants retail online as well as physical premises. The webinar will be of interest to any practitioners dealing with retail lettings, whether for landlords or tenants.
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
- Factoring in online sales
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