Rent review

Rent review for a commercial lease

Eddisons offers a comphrehensive range of servcies when it comes to advice on your commercial property lease. Contact us to speak to an expert now.

Updated 24th January 2025

What is a Rent Review?

Rent reviews are standard provisions in many commercial leases in the UK. They are a re-assessment of rental fees designed to keep them in line with the amount a new tenant would pay for a comparable space. 

This task typically takes place every three or five years, but their frequency differs depending on the quality of the asset. The commercial rent review may be written into your original agreement whereby after a certain period, the landlord has the right to assess the charges and adjust accordingly. 

Commercial lease advisory

We can provide commercial lease advisory services for landlords and tenants. With over 100 chartered surveyors across the UK, our team are experienced in advising property owners and occupiers on all apects of the lease cycle. Contact our team today to find out how we can assist.

Why is it important to conduct a rent review?

As a landlord, it is important to conduct frequent reviews to assess whether your rent charges match current market rates. The benefit of negotiating these well can result in an uplifted income which, in addition to improving cash flow, can positively impact the property’s capital value. 

"Regular commercial rent reviews are crucial for maintaining competitive lease agreements, ensuring profitability and aligning costs with market trends—making them a cornerstone for sustainable business growth and financial planning."

Stephen Hawkins
Regional Managing Partner

Our commercial rent review services

Commercial rent reviews are completed by our Surveyors. They will create detailed reports to help landlords make more informed decisions. Lease adjustments are sometimes disputed, and we can also help owners and occupiers find an agreeable amount that works for both parties.

How are commercial rent reviews calculated?

Commercial rent reviews can be calculated through two different methods:

  • Index-based review – The rental fee rises in line with an index such as the Retail Price Index (RPI)
  • Open market valuation – A ent review surveyor will conduct a detailed appraisal of the property’s value based on other comparable assets in the market. This assessment method can lead to substantial increases if there is significant demand for the building type and location

What is the commercial rent review process?

  1. Notification – The landlord will inform the tenant of the appraisal. Providing around three months’ notice is advised 
  2. Assessment – A rent review surveyor will determine the building’s rental value based on other similar properties in the area  
  3. Serve notice – The occupier will be told what the new fee will be. They will have 28 days to issue a counter letter if they wish to challenge an increase
  4. Negotiate the figure – If a counter-notice is issued, the owner and occupier can negotiate a mutually acceptable lease amount. A rent review surveyor can assist if an agreement cannot be reached
  5. Document the decision – A document detailing the new amount agreed on, date of appraisal and when the new fee applies will be produced and signed by both parties

Experts in commercial property

Contact our team of leading auctioneers, property agents, and RICS-qualified surveyors today.

Why choose Eddisons for a commercial rent review

With a hugely experienced Lease Advisory team, we are well-placed to carry out commercial rent reviews and can act on tenants' behalf in such matters. This formal representation ensures a level playing field and a fair process. Some other reasons you can depend on us include:

Arrange a commercial rent review with a surveyor today

If you are facing a commercial rent review or need to conduct one and would like advice, please use the ‘get in touch’ form below and one of our team will contact you to discuss your options. Alternatively, call 0800 051 2593 at your convenience.

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Commercial lease rent review case studies

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Your commercial rent review team

Ellis Sims
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Ellis Sims

Surveyor

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James Hall
James Hall

James Hall

Associate Director

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John Padgett
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John Padgett

Director

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Mark Critchley
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Mark Critchley

Director

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Frequently asked questions about commercial rent reviews

How does a rent review affect tenants?

For tenants, a poorly negotiated commercial rent review can increase overheads and have a knock-on effect on business rates, as the Valuation Office Agency takes account of the rent being paid when it assesses the rateable value of a commercial property.

What is a rent review clause?

The rent review clause in the lease agreement will define how the rent is calculated and references ‘assumptions’ and ‘disregards’. Assumptions are features like the length of the lease, use of property and state of repair. Disregards cover aspects such as goodwill and tenant improvements.

Can I negotiate commercial rent review terms?

Yes, you can dispute the new rent amount if you do not believe it is fair. You will have 28 days to appeal after notice is served and will be able to try to find a figure both you and the owner agree on.

We recommend seeking advice from a chartered rent review surveyor as they can act as a point of reference and provide evidence to support any case made by either party. Contact us if you would like to appoint one of our experts.

Can rent reviews lead to downward adjustments?

This process only usually leads to upward adjustments, which is why tenants often try to resist rent review clauses in commercial leases. If an open market valuation suggests the price should be reduced, it will usually stipulate in the lease that the payable amount will remain flat. 

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