For the tenant, a turnover rent arrangement offers flexibility when business turns down, while ensuring that the landlord is incentivised to promote and maintain the development. For landlords the idea offers the potential for higher rent receipts, and a reduction in the risk of tenant insolvency and rental voids. But while the essence of the idea is simple, working through the implications in the lease drafting can be a headache, raising issues on information capture, underletting restrictions and the operation of break clauses, to name a few.
This webinar will give an overview of turnover rents, and consider how to make them work in a world where many tenants sell online as well as from physical premises. It is aimed at those negotiating retail lettings for both landlords and tenants.
The webinar will cover:
• Calculation of turnover rent
• Ability to revert to an open market rent
• Implications for alienation
• Impact on rent review
• Impact on break options
• Relevance of use restrictions
• Factoring in online sales