If you are granting a new lease you may want to think about other ways to review the rent rather than the traditional open market review. For example, fixed stepped increases or increases linked to the retail prices Index.Unfortunately, rent reviews of commercial property can often lead to disputes between landlords and tenants. Having the assistance of a specialist can help to reduce this risk and ensure you are protected in the event of a dispute occurring.
In recent times short term leases have become much more prevalent. However where a commercial lease is granted for 10 years or more there will usually be an upward only rent review provision at intervals of 5 years. The rent is normally reviewed to the open market value that could be achieved based on a number of assumptions set out in the lease. If the parties cannot agree then the lease will normally provide for the matter to be settled by either arbitration or by the appointment of an independent expert to make the final decision