Use this checklist as an initial preparation guide for a forthcoming commercial rent review.
Before the review
- Locate the signed lease and any supplemental documents.
- Confirm the review date and mechanism.
- Read the assumptions, disregards and notice provisions.
- Check the current passing rent and payment history.
- Identify tenant alterations and improvements.
- Confirm accurate floor areas.
- Inspect the property where appropriate.
Valuation preparation
- Research recent lettings, renewals and review evidence.
- Understand incentives and lease terms behind comparables.
- Adjust evidence for size, specification, location and use.
- Establish a reasoned rental opinion.
Negotiation and completion
- Make or respond to proposals with supporting evidence.
- Monitor potential back rent and interest.
- Check third-party provisions if agreement is not reached.
- Record the settlement clearly.
This checklist is general information and not legal advice or a valuation.