Rent Review in Commercial Leases - Drafting Tips & Traps

Introduction

Rent review provisions may seem a dry subject but are a key clause in any commercial lease for any landlord seeking investment return. For a tenant the rent may well be the most significant outgoing for their business so the level of potential increases are of vital importance. Following the COVID pandemic turnover rents have become popular in some situations, but these can be tricky to get right. Errors in the drafting of Indexed rent reviews have led to much litigation.

The biggest shock to the commercial property market is that from 2027 it is expected that upwards only rent reviews will be banned - what should you advise clients, landlords or tenants? What should landlords do to protect the value of their reversion? What about intermediate landlords?

This course will explain the types of rent review and look at drafting tips and traps on each.

What You Will Learn

This live and interactive session will cover the following:

• Types of rent review - overview
• Indexed /RPI/CPI - drafting tips and traps. Weapons of Math Destruction - errors in indexation
• Turnover Rents. Key points to watch out for and how to work with the client and their surveyor or accountants to result in a workable outcome
• RICS market value
• The essential concepts of 'assumptions and disregards' and their impact on practical situations - improvements, breaches of covenant, determination by experts, etc.
• The Upwards only rent review ban - the story so far....

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.