|  | | Rent Review | | | A rent review creates a process of negotiation between two parties which are already locked into a contractual relationship. They are compelled to reach a solution by negotiation or referral to Arbitration. This requires a detailed analysis of the most relevant market evidence and an understanding of the precise intentions of the review clause in this lease.
Notwithstanding their unpopularity within the tenant sector upward only rent review clauses still predominate in commercial leases and in the absence of legislation that situation is likely to continue.
Whether acting for landlords or tenants our aim is to derive the optimum result for our client. Rent review negotiations are rarely just about rent. The process offers each party the opportunity to bring other objectives to the agenda. We aim to explore every avenue in this respect.
By its very nature the Arbitration process involves cost and risk. There should be no such thing as a certain win. If that were the case one of the parties has failed to convey the strength of their case. The preliminary formalities of Arbitration can sometimes be necessary to draw a reluctant party into negotiation. Before advising a client to continue beyond that point, we would ensure that every effort has been made to reach the best negotiated settlement in the context of the prevailing market conditions.
For further information please contact Jeremy Gilbert.
Case Study
Rental saving of £52,900 per annum negotiated from landlord’s initial proposal on 13,500 sq. ft. office premises at One Golden Square, London, W.1. on behalf of Virgin Radio.
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