Turnover-Based Rents 
Expires after 90 days
CPD Hours: 1
The woes of the retail sector over the past few years are well-recognised, and are now compounded by the effects of Covid-19. Lease structures are coming under increasing scrutiny, as both landlords and tenants seek ways to support businesses. Switching from open market rental to a turnover-based arrangement is an increasingly popular option for assisting tenants, and has the added advantage of being relatively familiar and well-established.
Simplified turnover rent arrangements are increasingly seen, but the idea is, nevertheless, one which can be complex in implementation.
- What is included in calculating turnover?
- How does turnover translate into rent?
- Ability to revert to an open market rent
- Implications for alienation
- Impact on rent review
- Impact on break options