Commercial property leases often include rent review provisions, typically every 3 to 5 years. For example, a 6-year lease may include a review at year 3, while a 10-year lease may be reviewed at year 5. These reviews are usually based on open market rent, although some leases may include stepped increases or index-linked adjustments such as RPI.

Why Rent Reviews Matter

Unlike residential tenancies, which are often reviewed or renewed every 6–12 months, commercial leases are granted for fixed terms. While leases used to run for 20+ years, the modern average is now closer to 5–6 years.

Because of this, rent reviews are essential to ensure the rent remains in line with current market conditions. Both landlords and tenants need to understand how these reviews work and plan ahead to protect their position.

How Open Market Rent Reviews Work

Most commercial leases set out a framework for calculating rent at review. This includes assumptions and disregards designed to reflect what the property would achieve on the open market at the time of review.

In simple terms, the rent is adjusted to reflect:

• current market demand
• comparable local properties
• lease terms and property condition
• Planning Ahead is Key

Whether you are a landlord or a tenant, preparation is critical. Rent reviews are often not time-sensitive, but leaving things too late can weaken your negotiating position.

Leases may allow either party to refer the matter to a third party, such as:

• an independent expert
• an arbitrator (often appointed via RICS)

However, this route can be costly and is not always practical for smaller properties.

Professional Advice Makes the Difference

In most cases, both parties will appoint a commercial property surveyor to assess the market rent and negotiate on their behalf. This helps ensure a fair outcome and avoids unnecessary disputes.

How Owen Carter Commercial Can Help

At Owen Carter Commercial, we take a practical, deal-focused approach to commercial property matters. Whether you are reviewing rent, considering a sale, or exploring your options, we work directly with clients to achieve the best possible outcome.

We combine local market knowledge with a hands-on approach, helping landlords and business owners make informed decisions at every stage.

Speak to Us

If you are approaching a rent review or considering your options with a commercial property, get in touch for a straightforward conversation.