Too often, the first a lawyer hears of a new client’s commercial lease is a sorry tail of how soft the economy is, how hard it is to make a buck, and on top of all that – how they’ve just been given notice of an exorbitant market rental increase.
They send you a copy of the notice and the lease, you skim through the rent review clause and sure enough after a few fixed increases they’ve come to the end of a term, have exercised an option without first asking what the rent would be, and now its market review time.
But all is not lost, the market review clause allows for a determination.
Depending on your state and the type of property you ponder the options as to whether to refer it to the Small Business Commissioner or jointly appoint a determining expert valuer.
For many, the option of referring the matter to a government agency provides a streamlined and hopefully – a less expensive process.
For others – it presents all the disadvantages of trusting any delicate matter with any government agency.
The option of a joint appointment of a determining valuer, as detailed in the lease, for many, is a better option to enable closer contact and a greater opportunity for input by the respective parties.
A professional determining valuer will provide a clear and concise process, well outlined, upfront for agreement by both parties, with adequate opportunity to present their case either themselves or by another valuer representing their interests.
For a fast, free, no obligation quote for your rental valuations, submissions for determinations or rental determinations themselves, or for any other matter – simply click the button below.
