(redirected from Upward-Only Rent Reviews)
UORRUpward-Only Rent Reviews (leasing policy; UK)
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It invests in and manages both standing assets and pre-let forward funded developments that are well-located, modern assets, typically greater than 500,000 sq ft rented out on long-term leases (at least 12 years) with upward-only rent reviews and geographic and tenant diversification.
Triple Point said the rents received under the leases are (or will be, in the case of the forward funded asset) subject to annual, upward-only rent reviews, increasing in line with the Consumer Price Index.
In addition, 77% of leases benefit from upward-only rent reviews.
An NTMA spokesman said: "If the NTMA had remained in the Treasury Building, it would have faced upward-only rent reviews in 2020 and 2021 and it is likely the new rent at the Treasury Building would have exceeded the rent payable in Dublin Landings."
"The unforgiving shift towards online spending against a backdrop of inflexible leases, upward-only rent reviews and spiralling operating costs has put traditional retail business models under intense pressure," he said.
The data shows this "quiet revolution" in leasing practise has been taking place since the early 1990s, when the majority of leases were "institutional": typically for 90s' 20 or 25 years and often containing upward-only rent reviews.
It pays pounds 1.1m a year with Retail Prices Index-linked upward-only rent reviews.
A third contract-related factor that may influence the NVR is the issue of upward-only rent reviews. Heretofore upward-only clauses have been standard in Dublin office leases.
The Grafton Street Tenants' Association recently wrote to Justice Minister Dermot Ahern after he brought in legislation to stop upward-only rent reviews.
"Also, two distinct advantages of the commercial property market are that leases tend to be longer than for residential property and it is common to have upward-only rent reviews. In a volatile market, this lends an extra element of security to the investment."
There will be five-yearly upward-only rent reviews.
lease features terms of up to 25 years, and upward-only rent reviews every five years, with no provision to break the lease.