TURNOVER RENT AND INCLUSIVE RENT: MOVING AWAY FROM THE RACK:RENT, CLEAR LEASE

Tenants increasingly look for alternatives to traditional rental arrangements, and in practice this often means turnover-based rent, or inclusive rent. Both challenge landlords’ expectations, but have plus points for investor as well as occupier.  Both mean looking again at other terms of familiar lease forms. This talk will consider both types of arrangement critically; points covered will include:

• Does turnover-based rent have to be a complex arrangement?
• Adapting familiar lease provisions to accommodate turnover terms
• How can a turnover rent arrangement capture future retail innovations?
• The case for doing without a tenant’s repairing obligation
• How new lease forms accommodate the demand for greater flexibility

Mark Shelton, Commercial Property Management Law Trainer