commercial lease terms

[sabina]

Hi all,

Just looking for some basic information regarding commercial leases

When a lease term ends, and there is another option to renew, is the landlord automatically legally permitted to increase the rent via a rent review ?

OR is this subject to what written is in the lease regarding increases ?


thank you

 

[boods99]

Hi Sabina,
In a nutshell, you can only increase the rental rate in line with what is stated in the Lease. The Lease should have a provision for the working out the new rate. Most of the time, when the tenant exercises an option, there is usually a market review, but not always. Check the Lease!

Boods

 

[Modal Harmony]

Hello Sabina, Boods is correct; we are just negotiating a lease as franchisees of a Jetts Fitness 24/7 gym facility for 5+5+5 and the yearly reviews are at CPI, but the final review at year 4/5 is capped at 8%.

Please ensure you have a competent solicitor go through the document to avoid any nasty surprises!