Rent review
Virtually all commercial leases issued in the U.K. will contain a provision allowing the landlord to periodically adjust the rent payable by the tenant.
This rent review clause represents a significant safeguard for the landlord as it enables them to adjust the rent to reflect current market conditions. Many leases are granted for considerable periods of time and without a rent review clause, the rent payable could fall significantly behind levels prevailing in the market at any particular point in time. And, of course, inflation erodes value over time.
Even more significant than the existence of the clause itself is the fact that these clauses provide for 'upwards – only' reviews. Should general market rents be lower, the tenant will not benefit as the rent will be unchanged – not reduced.
This is one of many reasons why, for many years, commercial property has been such an attractive prospect for investors. With a financially sound tenant in occupation, there is clear visibility of income for years ahead with no risk of reduction until the lease comes to the end of its term, or is ended by virtue of the exercise of a 'break clause'.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Shortage of high-quality data threatening the AI boom
And other fundamental issues highlighted by the Open Data Institute.
Data centres top the list of growth opportunities
In robust, yet heterogenous world BACS market.
Increased funding for BSR announced
Within plans for next generation of new towns.
New Towns Taskforce interim policy statement
With initial reactions to the 6 month policy update.
Heritage, industry and slavery
Interpretation must tell the story accurately.
PM announces Building safety and fire move to MHCLG
Following recommendations of the Grenfell Inquiry report.
Conserving the ruins of a great Elizabethan country house.
BSRIA European air conditioning market update 2024
Highs, lows and discrepancy rates in the annual demand.
50 years celebrating the ECA Apprenticeship Awards
As SMEs say the 10 years of the Apprenticeship Levy has failed them.
Nominations sought for CIOB awards
Celebrating construction excellence in Ireland and Northern Ireland.
EPC consultation in context: NCM, SAP, SBEM and HEM
One week to respond to the consultation on reforms to the Energy Performance of Buildings framework.
CIAT Celebrates 60 years of Architectural Technology
Find out more #CIAT60 social media takeover.
The BPF urges Chancellor for additional BSR resources
To remove barriers and bottlenecks which delay projects.
Flexibility over requirements to boost apprentice numbers
English, maths and minimumun duration requirements reduced for a 10,000 gain.
A long term view on European heating markets
BSRIA HVAC 2032 Study.
Humidity resilience strategies for home design
Frequency of extreme humidity events is increasing.
National Apprenticeship Week 2025
Skills for life : 10-16 February