Comparable evidence is central to many open-market rent reviews, but a comparable is useful only after its transaction and property characteristics have been understood.
What can constitute evidence?
Open-market lettings, lease renewals and rent review settlements may all provide evidence, although their weight can differ.
Adjusting the evidence
Consider transaction date, location, floor area, configuration, frontage, specification, incentives, lease length, break options, repairing obligations and permitted use.
Headline rent is not always effective rent
A quoted rent may need analysis where a rent-free period, capital contribution, stepped rent or other incentive formed part of the transaction.
Quality over quantity
A small number of closely comparable transactions can be more persuasive than a long schedule of poorly matched evidence.