Rent reviews subject to scrutiny

Monday, December 01, 2008

Rent reviews are among the issues being looked at by business property owners, it has emerged.

A number of commercial real estate firms in the UK are assessing rent reviews and leasing structures in order to help their corporate tenants, reports Reuters.

The newswire notes that a group of seven property owners has expressed a desire to assist any tenants who enter difficulty during the current economic turbulence.

Among the efforts to be made is a shift towards monthly rent payments for businesses with annual costs of less than £50,000.

By allowing firms to pay smaller amounts more frequently, the group tells Reuters that it hopes to improve cashflow for its tenants.

Meanwhile, rent reviews, the structure of leases and related issues such as insurance are all still being considered by the group in order to determine other ways in which tenants may be aided.

Tony Mernagh, chief executive of the Brighton and Hove Business Forum, recently told The Argus that the loss of interest by taking rent monthly is likely to have less impact on landlords' profits in light of the lower base rate in recent months.

Source: ask-re The Property People LLP