Rent Reviews and Lease Renewals
Both landlords and tenants are familiar with the regular review of rents during the course of a lease, usually to bring the rent paid up to current open market level. A tenant wishing to remain in occupation on lease expiry will also experience the rent being adjusted to the then market level.
We are experiencing more tenants who agree rents without advice and find themselves, if they decide to vacate during the term, with a property that they cannot sub let because the rent they are paying is higher than other similar space in a market place which may be oversupplied with space. Landlords too often agree rents without advice and find that they have negotiated a rent which is below market level, thereby losing revenue until the next review.
Commercial rents have generally risen over the last twenty five years but recently rentals paid for some types of commercial property have fallen sharply resulting in some uncertainty in the market place. At such times experienced valuers are needed even more than usual, to ensure that rents quoted and agreed at review or lease renewal are in line with market levels.
We provide advice to both landlords and tenants at rent review and expiry and advise how to ensure that rents are agreed which reflect current market trends.
For more information about rent reviews and lease renewals please go to Valuations and Why You Need Them.