Most commercial rent reviews are resolved by negotiation. Effective negotiation starts with the lease and evidence rather than an arbitrary percentage increase or reduction.
Establish a reasoned position
Analyse the review clause, property and comparable transactions before making or responding to a proposal.
Exchange useful evidence
Understanding the terms behind a comparable can narrow disagreements. Headline rents without transaction context are less useful.
Keep third-party procedure in mind
The possibility of independent expert determination or arbitration affects strategy, but referral should not substitute for attempting to understand the valuation issues.
Record settlement clearly
Once agreed, the revised rent and effective date should be documented and back rent or interest addressed where applicable.