We are Government accredited market rent Determination valuers offering cost effective assessments on market rent reviews. We offer thoroughly researched comparable rental data to ensure you are achieving market rent for the space you are leasing, whether as lessor or lessee. We also include other key factors such as the permitted use, lease periods, fit-out, operating expenses, while assisting your legal advisors with other provisions relating to assignment /subletting, make good refurbishment, etc.
Most retail, office & industrial leases contain mechanisms for periodic rent reviews. These are usually annual adjustments using three common methods – Consumer Price Index (CPI); Fixed percentage increase or Review to Market. A market review updates changes to market conditions such as supply and demand, location, condition of property, etc to ensure the rent keeps pace with current market fluctuations. In most leases, market rent reviews occur at the exercise of option periods which are usually equal to the length of the first term certain e.g. 3 + 3 years, 5 + 5 years, etc.
The first stage of the rental review process commonly starts with the landlord sending a notice to the tenant proposing a change in the rent. If there is a disagreement regarding the new amount, the two parties commence negotiations. If the two parties fail to reach an agreement regarding an appropriate rental adjustment, the tenant will usually be entitled to appoint an independent Specialist Valuer to help determine a fair rental adjustment. The Retail Shop Leases Act Qld has specific rules that regulate the process for carrying out a market rent review. Failure to follow those market rent assessment instructions often lead to undesirable and expensive outcomes.
So call us now on 1800 800 101 for a FREE no obligation chat with an experienced property dispute valuer.