The commercial property market is evolving at an unprecedented pace as technological advancements change the face of UK business practices. New pressures, meanwhile, are being placed on landlords as tenants seek more flexible partnership arrangements. Both sides must take a fresh look at what can be done in the leasing context to meet individual requirements. Retailers are exploring more complex retailing techniques and require greater flexibility in property agreements.
Landlords have their own concerns.
One solution may lie in the turnover rent lease. Normally this involves a tenant paying a rent consisting of two parts. Usually the more significant portion is a fixed minimum sum open market rental value. The second element is an agreed proportion of the premises' turnover. The commercial logic behind the turnover lease is that a landlord receives a guaranteed return on the property, with potential for increased income.