Setting commercial rents
We have hundreds of commercial properties across our area. They vary in size, location and what use they'd be suitable for so rent differs.
Each of our properties is assessed by a professional valuer. We set rents for commercial property at a market level, depending on what the demand is for the particular type of unit.
Rents for commercial properties are generally set at three different events and you can find out more about each below.
We'd always advise potential tenants to get legal advice on their leases so they can understand what it means for them and their business.
We market the property to let at rent we think from experience the market will support. We receive offers on the property and consider them before selecting the most appropriate one.
When the unit is on the open market, demand could be lower than we anticipated so we may lower the asking rent.
In cases where there is high demand for the property, we may ask potential tenants to submit their 'best bid' and the property could be let for higher than the original guide.
The rent and terms of a new lease are normally agreed by the landlord and tenant. We will ask for the rent that we believe the unit would attract on the open market.
If a tenant and a landlord can't agree on the terms, the tenant can apply to court for the terms to be determined by an independent third party.
There are some legal exceptions to this - such as if the leases is excluded from the provisions of the Landlord & Tenant Act 1954.
Not all leases contain rent reviews but they are common in leases longer than five years.
The wording of a rent review clause is individual and will be agreed by the landlord and tenant when the lease is signed and will be legally binding.
Some clauses specify a certain amount of rent, others increase linked to an agreed formula such as RPI or CPI or are linked to open market value.