ADB | RENT REVIEWS |
"Professionalism and drive second to none with insight and confidence needed to make the right decision"
Rent Review clauses are a feature of most modern commercial leases which are granted for a term in excess of 3-5 years.
The majority of rent review clauses in the UK are upward only, particularly for office and industrial premises.
The upward only rent review is one of the longstanding features of the UK property market, and much
As a tenants,
international tenants in particular,
find this characteristic property leases surprising.
Many rent review provisions
complex, and expert advice essential in virtually all cases.
There are a number of issues that need to be considered:-
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The timetable for notices and conducting the review and whether time is of the essence The demise- (what’ included) Floor area as defined by RICS/ISVA Revised Code of Measuring Practice Building Specification Improvements to be excluded The terms of the lease The notional terms of the tenancy for the purpose of review Market comparables Tactics and timing Interest provisions settlement post review Dispute resolution procedures and on
It is important to understand the method of calculating measured
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floor area by reference to the appropriate industry guidelines, a detailed understanding of the provisions of the rent review clauses and the inter-relationship of clauses within the lease.
restructures on some of largest buildings but also
premises more typically throughout London.
We would always recommend that clients seek professional representation when handling any rent review but we have set out below a more detailed background in relation to rent reviews for any occupiers wishing to understand this complex issue in a little more detail.
timetable and preparation
It is important to establish whether your lease specifies a strict timetable for conduct of a rent review or whether it allows flexibility to negotiate an agreement without adhering to a strict timetable.
Establishing the timetable for your
negotiations would normally considered in the context tactical advantages in relatio
be of n to
the market and any interest provisions that may apply to settlement subsequent to the
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