Turnover Rents - Increasingly popular, increasingly challenging [2020]

Webinar Details

Available now

Expires after 90 days

Mark Shelton

CPD Hours: 1


This webinar is presented by Mark Shelton. Tenants increasingly seek to agree turnover rent arrangements with their landlords, attracted by the idea of a major overhead which flexes with trading conditions. For landlords such arrangements offer increased sustainability of tenants’ businesses, while improving the prospects of letting vacant space. When tenants exceed expectations, there is also the carrot of higher rent receipts than would be available on an open market rental basis.

Watch the 2020 trailer.

You can state the idea in a couple of sentences, but providing for it a turnover schedule to a lease is an entirely different matter. Not only is it difficult to predict and capture all sources of turnover, but there are consequential changes required to everyday lease provisions like alienation clauses and user restrictions, to name but two. The ever-increasing variety of ways in which tenants generate turnover makes documenting these arrangements ever more of a challenge, though established and new technologies may present solutions.

This webinar will give an overview of the topic, and consider how well turnover rents work in a world where many tenants retail online as well as from physical premises.

Learning objectives

  • To understand how common turnover rent formulas are used to achieve the commercial objectives of both landlord and tenant.
  • To appreciate the main principles of how turnover is captured and verified.
  • To understand the mechanisms for payment and adjustment of turnover rents.
  • To identify the knock-on consequences for lease drafting more widely.