Annual rent reviews on commercial property are of great importance to the value of the property and the return they will ensure the owner will receive. There is no fixed rule with rent reviews as it will depend largely on the property, the tenant and the market at the time of signing of the lease. As many leases will run anywhere from 3 – 15 years and no one can predict the future, it is important to negotiate a good balance with the tenant that achieves a good outcome for the owner without driving the tenant out.
There are a number of methods commonly used. They include: