The majority of our work is privately paying and we will typically require a payment on account of our fees before commencing work. We do not do legally aided work.
Commercial Rent Review Solicitors
It is important to strike a commercial balance in a commercial rent review. Often a landlord and tenant have agreed to rent review provisions within a lease, and this may seem straightforward. When the reviewed rent is being agreed, differing interpretations can arise, which may result in a dispute. A smooth and orderly rent review process, and sensible resolution of any disputes, are both important to maintain a healthy landlord and tenant relationship.
At JMW, we act quickly and effectively to support you in a rent review dispute, whether you are a landlord or a tenant. We advise on the process, can put you in touch with specialist valuation surveyors, and engage with the other party with the aim of reaching a negotiated settlement and avoiding the need for costly court proceedings.
If you are ready to discuss your rent review needs with experienced property litigators, get in touch with JMW today. Call 0345 872 6666 or fill out our online enquiry form to request a call back.
On This Page
- What Our Clients Say
- How JMW Can Help
- Meet the Team
- What Is a Commercial Rent Review?
- Types of Rent Review Clauses in Commercial Leases
- How the Rent Review Process Works
- Working With Surveyors and Independent Experts
- Methods of Resolving Rent Review Disputes
- What Is the Process of Instructing JMW?
- FAQs on Commercial Rent Review
What Our Clients Say
How JMW Can Help
At JMW, our expert team of property litigation solicitors provides clear, practical support to help you resolve a rent review dispute. We specialise in proactive management and use our experience to guide you through the process while protecting your rights and interests.
Our service covers all contentious elements involved in a commercial rent review dispute. We can help you with the following:
- Determination of rent: we can advise you through the process of determining a review rent in accordance with your lease, which can include helping you find the right expert for your case.
- Interpretation: we can review and advise on a rent review clause within a lease and help determine the meaning of a disputed clause or drafting error.
- Breaches of rent review clauses: we can assist you should a party not comply with their obligations within a rent review clause, including your options for recourse.
- Negotiate: our team will look to achieve a sensible commercial outcome with the other party, to minimise the cost and disturbance associated with long-running commercial disputes.
- Formalise: once a rent review has been resolved, we will work with our colleagues in our Real Estate Commercial Team to record the new rent formally.
JMW has a proven track record in resolving property disputes for individuals and commercial entities of all sizes. We work with clients to reach commercially sensible outcomes, using negotiation or mediation wherever possible and pursuing litigation when required. Our aim is to preserve and improve landlord and tenant relationships where possible.
Meet the Team
JMW’s experienced property litigation team advises both landlords and tenants on every aspect of the commercial rent review process. With extensive experience in this area, we use our knowledge to resolve your dispute efficiently and in a way that supports your long-term interests.
What Is a Commercial Rent Review?
Commercial leases, particularly those running for more than five years, usually contain a rent review clause that allows the rent to be adjusted at set intervals. These clauses are drafted to reflect how the parties intended the rent to evolve during the term, and they determine both the timing of the review and the method used to calculate the new rent.
Rent reviews can be linked to market conditions, an index or pre-agreed stepped increases. For landlords and tenants alike, understanding exactly how the clause operates is essential to avoiding disputes when the review date arrives. At JMW, we work with all types of review provisions and advise on each stage of the process, including interpreting the lease, preparing for negotiations and responding to valuation evidence.
Types of Rent Review Clauses in Commercial Leases
Commercial leases use several review mechanisms, each producing a different outcome. The most common include:
- Open market rent review: this is the standard approach in many commercial leases. The new rent is based on the market rent the property would achieve on the open market at the review date, on the basis of pre-agreed assumptions and disregards.
- Index-linked rent reviews: some leases tie rent increases to a recognised index such as the Retail Prices Index or the Consumer Prices Index.
- Stepped or fixed-uplift rent reviews: here, the parties agree in advance that the rent will increase by fixed amounts or in predetermined stages at set intervals.
- Turnover rent: these are occasionally used in retail and leisure. Here, the rent is linked either wholly or partly to the turnover generated by the business operating from the premises.
- Upward-only rent reviews: many leases specify that rent can only move upwards, even if market conditions fall. These provisions influence negotiation strategy and can be a source of dispute when market values soften.
The specific mechanism in your lease will dictate the evidence required, the process to be followed and the scope for negotiation. We can review the clause in detail, explain how it operates in practice, and outline the steps you need to take to prepare for the review, including the evidence required and any procedural obligations in the lease.
How the Rent Review Process Works
While rent review provisions differ, the process generally follows a structured path:
1. Review date
The lease sets the formal review date. Some leases make time of the essence, meaning strict compliance is required. In others, the review can take place after the date, but parties should still act promptly to protect their position.
2. Service of notices
The lease will specify how and when notices must be served. A solicitor's eye for detail is essential here, because errors in form, timing or method of service may create disputes or invalidate a proposed review.
3. Exchange of valuation evidence
Both parties engage valuation surveyors to assess market rent or apply the agreed mechanism. Evidence may include comparable transactions, market reports and details of similar lettings.
4. Negotiation
Most rent reviews resolve through negotiation once surveyors have exchanged evidence. The strength of your legal and valuation arguments will play a large part in determining the outcome.
5. Referral to an independent third party
If agreement cannot be reached, most leases provide for the matter to be referred to arbitration or expert determination. The route you follow will depend on the wording of the rent review clause. An arbitrator will consider evidence from both parties before issuing a binding award, while an independent expert will reach a decision using their own professional knowledge of the market. The JMW team will prepare you for this process, and make sure the evidence is clearly presented to create a strong argument for your position in the matter.
6. Recording the revised rent
Once agreed or determined, the new rent must be documented. We work with our Real Estate Commercial colleagues to ensure the revised rent is recorded correctly.
Rent reviews often turn on points of interpretation, valuation evidence and procedural steps; having an experienced solicitor involved means these issues are managed carefully from the outset. This reduces the scope for avoidable disputes, supports clearer negotiations with the other party and places you in the best position if the matter is referred to an arbitrator or independent expert.
Working With Surveyors and Independent Experts
Rent reviews rely heavily on valuation evidence. We work closely with experienced surveyors across the commercial property sector, to make sure:
- The valuation aligns with the lease’s assumptions and disregards.
- Comparables are properly tested and challenged where necessary.
- Evidence is presented in a clear and commercially focused way.
Where the lease requires referral to an independent expert or arbitrator, we will prepare submissions, respond to the other party’s evidence and guide you through each step.
Methods of Resolving Rent Review Disputes
In most cases, disputes resolve through negotiation once the legal and valuation issues are clarified. Where that does not happen, leases typically provide:
Expert determination: a specialist surveyor acts as an independent expert and determines the new rent based on valuation principles. This is often faster and more cost-effective than arbitration.
Arbitration: an arbitrator resolves the dispute based on evidence presented by both parties. The arbitrator’s award is legally binding.
Mediation: a neutral mediator assists the parties in reaching a commercial settlement.
Court proceedings: this becomes necessary where other avenues have been exhausted, or where there are complex legal issues or failures in the rent review mechanism.
We can advise you on the most appropriate route, and manage the process from start to finish, to keep disruption to your business minimal.
What Is the Process of Instructing JMW?
When you come to us for support with a rent review issue, we take clear, organised steps to help you understand the process from the beginning.
- Initial conversation: we start by discussing your property, the terms of your lease and the points that have prompted you to seek advice.
- Understanding your position: we then look closely at how the review clause operates and how it applies to your circumstances, so we can outline a realistic strategy for moving matters forward.
- Clear guidance on costs and timing: we explain the likely costs involved and give you an indication of the timescales, helping you plan with greater certainty.
- Active file management: once we are instructed, we progress the matter without delay, keeping you updated and providing focused, practical advice at each stage.
FAQs on Commercial Rent Review
- What is the typical turnaround time for a commercial property dispute?
We understand the importance of acting quickly on instructions. While specific timelines vary based on case type and complexity, we prioritise efficiency and proactive communication to resolve disputes quickly and pragmatically.
- Can JMW advise both commercial landlords and tenants?
We act for both landlords and tenants, which enables us to understand the perspectives and drivers on each side. This provides critical insights into likely negotiation tactics, challenges and solutions that we can use to your benefit.
- Does JMW work with specific property sectors or asset classes?
We work across the whole property marketplace, including shopping centres, retail parks, industrial estates, offices and mixed-use developments. We have extensive expertise in sectors like retail, leisure and industrial property.
- Can property disputes be resolved without litigation?
In many cases property disputes can be resolved without going to court, saving time, money and stress. While the suitability of alternative dispute resolution methods depends on the specific circumstances of your case, these approaches are often effective in reaching a settlement that benefits all parties. At JMW, we help clients to explore these options at an early stage and tailor our approach to the needs of each specific dispute.
- How much do JMW's services cost?
Our property litigation team provides a range of pricing options, including fixed-fee arrangements and hourly rates where appropriate. We can discuss likely costs and the available funding approaches during your initial consultation so you have a clear understanding from the outset.
If you would like to talk to us about fees or your case more generally, our property litigation team is ready to help.
Talk to Us
To find out more about how we can support landlords and tenants during the commercial rent review process, contact JMW's Property Litigation team today. Call us at 0345 872 6666 or complete our online contact form to take the next step.
