A commercial rent review surveyor advises landlords and tenants on the rent payable from a review date set out in a business lease. We analyse the lease terms, the assumptions and disregards, comparable rental evidence and market conditions, then give you a clear opinion of market rent and support the negotiation or third-party process where instructed.
Sterlingworth Surveyors is an RICS-regulated firm. We act for landlords, for tenants, or for both parties jointly.
A rent review surveyor works out what the rent should be at a review date, based on the lease and the market, then helps you reach that figure — by agreement where possible, or through a third party where not.
That means reading the review clause, inspecting and measuring the property, analysing comparable evidence and preparing a reasoned opinion of market rent, then negotiating or preparing submissions.
The surveyor’s role is valuation and negotiation. Legal questions, such as how a clause should be interpreted or whether a notice is valid, are for your solicitor, and we work alongside them.
A rent review is a mechanism in a commercial lease that allows the rent to be reassessed at set points during the term. When and how the rent changes depends entirely on the wording of the lease, so every review starts with the clause itself.
Most clauses follow one of three approaches, and some combine them:
An upward-only clause is generally intended to stop the rent falling at review, even if the market has fallen. The exact effect depends on the wording of your lease.
Well before the review date. Early advice gives you time to understand the clause, gather current evidence and decide when to start the review.
Some leases say the review starts when one party serves a notice, sometimes proposing a new rent, and give the other party a set period to serve a counter-notice. Others have no notice procedure.
Whether a rent review deadline is strict depends on the wording of the lease. Where time is made “of the essence”, missing a deadline can have serious consequences, so if you receive a notice, take advice straight away. Your solicitor will confirm which deadlines apply.
A rent review happens during the lease. When a business lease ends and is renewed, the new rent is set through a separate process, and your solicitor should advise on the procedure.
Market rent is assessed by comparing the property with rents agreed on similar properties, then adjusting for the differences and for the assumptions the lease tells the valuer to make.
Comparable evidence can include open market lettings, other rent reviews, lease renewals and third-party decisions. It does not all carry equal weight, and how much weight each piece is given depends on how closely it matches the property and the review date. Each comparable is adjusted for size, location, condition, lease terms, incentives such as rent-free periods, and date.
These are instructions in the lease about the imaginary letting the valuer must picture. Assumptions add things that may not be true in reality, such as vacant possession. Disregards remove things that would otherwise affect the rent, such as improvements the tenant made at its own cost. Small differences in wording can move the rent, which is why we read them first.
Shop rents are often analysed by zoning. The floor area is divided into bands from the frontage backwards, because space nearest the window is worth most to a retailer. The front band (Zone A) is usually valued at the highest rate and the bands behind at lower rates, so shops of different depths can be compared like for like.
We act for landlords, for tenants, or for both parties jointly, using the same method whichever side instructs us: the rent is assessed on the lease and the evidence.
We check what the clause allows, assess the rent the evidence supports, advise on starting the review and negotiate with the tenant or their surveyor, aiming for a rent you can defend if challenged.
We test the landlord’s proposal against the lease and the evidence, identify points that should reduce the rent and negotiate on your behalf, so you pay no more than the lease and the market justify.
Landlord and tenant can jointly instruct us for a single independent opinion of market rent. We never advise one side against the other on the same review.
Most rent reviews are settled by negotiation between the parties’ surveyors. A typical review runs like this:
If negotiation fails, most leases allow either party to refer the rent to an independent third party, who decides it. The lease says whether that person acts as an arbitrator or an independent expert, and usually who appoints them if the parties cannot agree, often a professional body
An arbitrator acts rather like a judge, deciding the rent on the evidence and arguments the parties put forward under a formal procedure. They can also decide who pays the costs, and their award can be challenged only on limited grounds.
An independent expert uses their own knowledge and judgement and can make their own enquiries, rather than relying only on the parties’ evidence. The process is usually less formal, and the lease normally makes the decision binding on both parties.
An expert witness gives independent opinion evidence in arbitration or court proceedings. Their duty is to the tribunal, not to the party paying them.
Sterlingworth undertakes arbitration, independent expert determination and expert witness work, subject to the usual checks for conflicts of interest.
| Arbitrator | Independent expert | |
|---|---|---|
| Procedure | Formal, governed by arbitration law | Less formal, set by the lease and the expert |
| Challenge | Limited grounds, set by arbitration law | Normally binding under the lease, with little room for challenge |
Depending on what you need, our service covers:
A written opinion of market rent at the review date, based on analysed comparable evidence.
How the review clause, assumptions and disregards affect rental value, as valuation input alongside your solicitor’s advice.
Schedules of evidence, reports and submissions, help with review notices in liaison with your solicitor, and third-party work.
Professional representation in negotiations with the other party or their surveyor, where required.
We advise on rent reviews for offices, shops, industrial and warehouse units, and mixed-use buildings.
The fee depends on the property, the lease and the level of involvement you need — from a written opinion of rent to full negotiation or third-party proceedings. We confirm a fixed fee, or the basis of the fee, before you instruct us.
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Not against each other on the same review. We act for landlords or for tenants, and can be instructed jointly where both parties want a single independent opinion of market rent. We check for conflicts before accepting any instruction.
Instructions in the lease about the imaginary letting the valuer must picture. Assumptions add things, such as vacant possession or the tenant having met its repairing obligations. Disregards remove things, such as the tenant’s own improvements or its goodwill. Their wording can change the rent significantly.
Rents agreed on similar properties around the review date: open market lettings, other reviews, renewals and third-party decisions. Not all evidence carries equal weight; it depends on how closely it matches the property and the date. Each comparable is adjusted for size, location, condition, lease terms, incentives and timing.
Yes. We negotiate with the other party or their surveyor using a written, evidence-based case, report to you at each stage and settle only on terms you approve.
The review is not necessarily lost. Whether a review can still go ahead, and from when any new rent is payable, depends on the wording of the lease. Some leases make deadlines strict, so check the lease and take advice without delay.
It depends on the lease. An upward-only clause is generally intended to stop the rent falling at review, even if market rents have fallen. If the clause allows movement either way, it can go down. Your lease wording decides which applies.
Tell us about the property, the lease and the review date, and we will explain your options and confirm the fee basis before you instruct us.
