Rent reviews for Landlords
Generally, in a modern commercial lease which is over 3 years there will usually be an upward only rent review provision. The lease should state when a rent review can take place and the tenant should be given sufficient notice. Details of when the notice should be served and what the notice should state should be checked carefully. The rent is normally reviewed to the open market value that could be achieved based on a number of assumptions set out in the lease. If the parties cannot agree then the lease will normally provide for the matter to be settled by either arbitration or by the appointment of an independent expert to make the final decision.
Rent reviews for the Tenants
If you are a tenant and your landlord suggests a new rent at rent review time, you should not just accept this without seeking proper legal advice. Whilst the lease would probably not allow for a reduction of the rent, the landlord has to agree a new rent in accordance with the lease terms. Most leases will contain detailed provisions governing how a rent review should take place and you should take legal advice to ensure the landlord has followed the correct procedure