One of the areas we get asked about from time to time by clients and enquirers are upward only rent reviews. These were very popular among landlords, for obvious reasons, during the 80’s and 90’s.
The recent challenging trading environment for many retailers on the High Street as well as those operating in other commercial sectors, means that tenants are now more highly empowered to renegotiate lease terms, as landlords are increasingly under pressure to avoid a ‘void’ in their rental income. Empty units are not good for investor cash flow or confidence.
rhw can help negotiate towards “open market rent review” provisions or even a “turnover rent” clause rather than just accepting the “upwards only” option. We will ensure you don’t fall foul of onerous rent review intervals or nasty assumptions and disregards hidden away in a lease.
Get it right at the start of your lease term and you will have more chance of making your business a success. Of course, there are also opportunities to renegotiate mid-term if the going gets really tough. Landlords want their premises occupied and are not blind to what is happening in the economy.