- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 05 May 2017
This rent review clause represents a significant safeguard for the landlord as it enables them to adjust the rent to reflect current market conditions. Many leases are granted for considerable periods of time and without a rent review clause, the rent payable could fall significantly behind levels prevailing in the market at any particular point in time. And, of course, inflation erodes value over time.
Even more significant than the existence of the clause itself is the fact that these clauses provide for 'upwards – only' reviews. Should general market rents be lower, the tenant will not benefit as the rent will be unchanged – not reduced.
This is one of many reasons why, for many years, commercial property has been such an attractive prospect for investors. With a financially sound tenant in occupation, there is clear visibility of income for years ahead with no risk of reduction until the lease comes to the end of its term, or is ended by virtue of the exercise of a 'break clause'.
 Find out more
 Related articles on Designing Buildings Wiki
Featured articles and news
The types, causes and measurement of damp in buildings.
The new NEC4 contract creates a true procurement alliance arrangement for all stakeholders.
Andrew Strauss talks about performance and team building at the 2018 BSRIA Briefing.
Applications have to be in by the end of the week.
Reflections on the 5th Annual Global Congress of Knowledge Economy, held in Qingdao, China.
An artist finds ruined and decaying buildings a source of inspiration for his work. Book review.
When is there a right to light, and what happens if it is obstructed?
What would the nationalisation of economic infrastructure mean for GB?
A new guide to improving value by reducing design error.
We've reached 80,000 page views a day and 10,000 registered users. Why not join them?
A masterplan is a framework within which a location is encouraged to develop or change. Read our introductory article.