The date of a rent review is not necessarily set in stone, but the frequency of reviews will be outlined in your rental contract agreement. There is typically a set 3-month notice period that a landlord needs to inform the tenant of the increase, otherwise, it becomes invalid.

All rent reviews–whether commercial or residential–are conducted to ensure current rental figures are in line with the market. If not, they can be adjusted fairly.

As with anything, your landlord will need to give an appropriate level of notice before any intended rent rise. A trigger notice is typically required within a 3-months grace period. Though this can differ during the commercial rent review process.
If appropriate notice is not given, you may be able to contest the rent rise. As failure to inform you will negate the landlord’s right to impose an increase.

In most cases, the rent review process will be based on the condition of the property at the beginning of your lease. Keep a detailed record of all improvements made during your lease. As this way, you will not risk the chance of being potentially charged more rent for improvements made during your tenancy.

During a commercial rent review you will only have a certain amount of time to contest your landlord’s notice. Or, indeed, negotiate a new rent which is agreeable for both parties. Failure to respond within the given time frame could lead to unnecessarily inflated rent for your business. Responding well in advance of your commercial rent review deadline, then, is extremely important.

A typical commercial rent review will be calculated via comparisons to the local market and open markets rent (also known as open market rent value – OMRV). For most cases, both parties may wish to appoint an independent commercial property surveyor to determine a fair outcome for the rent review or to contest it.
Though a commercial rent review may end in either a rent increase or decrease, it will most commonly be increased. This is the result of inflation. Landlords typically only seek ‘upward only’ commercial rent reviews – so, you will likely never face a review where the fees may be lowered. If market levels do indicate a lower rent, then your rent will likely remain the same.

The OMRV is affected by the average rent for similar properties in your local area. However, it is important to know that OMRV is calculated based on the most valuable purpose of space. For example, if your lease allows your commercial rental property to be either a storage unit or an office, the calculation will treat the space as an office for this purpose.
Therefore, you may find yourself paying a higher rent on a commercial property despite the current use.

If neither parties can reach an agreement it becomes a disputed case. Therefore, both parties will need to follow an established arbitration process to resolve the issue in a legal matter. In most cases, this will mean following alternative dispute resolution (ADR) as a standard part of the rent review. A third-party representative will, therefore, be appointed to assess and determine a fair outcome.
When ADR fails and the dispute escalates, it could result in a court judgement to fully resolve the issue. This can quickly raise the expense and length of the process, so resolving the issue during ADR is better for both parties.

If a commercial rent review is under dispute, then you will have to continue paying the old rate until an agreement is reached. Should the rent increase go-ahead, a back payment for the period of a dispute will be required. Some cases may require an interest payment on the overdue amount.

In the case that the new rent is not affordable for your business, you may have some options in-built into your lease. You may be able to surrender the lease to the landlord or sublet/sell the lease to another business.