What is a commercial property rent review?

A commercial property rent review is simply a mechanism for bringing a rent in line with the prevailing rental values at the date of the rent review. A rent review was typically at 5 year intervals when leases were between 10 and 25 years long.

Commercial property rent reviews are now a less frequent occurrence as leases have significantly shortened with a typical lease length now only being between 3-5 years.

Nonetheless, commercial properties with rent reviews do still exist although the expertise for dealing with them has become rarefied.

Ashurst Real Estate has a long tradition of providing commercial property rent review advice to landlord and tenant clients across all types of property class that include offices, shops and industrial assets.

Our skill set includes initial due diligence and reporting, interpreting the quirks of a lease and their effect on value and negotiating the new rent on our clients’ behalf.

Where an agreement cannot be reached and an arbitration or independent determination is required, we are also adept at managing this process.

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What is involved in the process of a commercial property rent review?

We will start the project by reading the lease and all accompanying legal documentation. The contents of these documents normally provide the framework for valuing the property. Quite often, seemingly obscure clauses within a lease can have a profound effect on the outcome of the rent review.

Thereafter, an inspection and measurement survey of the property will occur to ensure that the property being valued aligns with its description within the lease.

Following research and identification of comparable properties, we will analyse the evidence and extrapolate our findings against the property’s individual attributes to reach a value for the commercial property that is the subject of the rent review.

Slowly slowly catchy monkey!

Commercial property rent reviews are akin to a game of chess and strategy and tactics must be considered.

Rent is not the only factor affecting value and a patient, diligent approach reaps greater rewards than a rush towards the goal whether a landlord or a tenant.

Most commercial property rent reviews are not time-restricted and can be actioned long after a rent review date without penalty to either side.

We prefer to take our time and achieve the best result possible for our clients.