Retail leasing FAQ5: I have a market rent review coming up – Who decides what the ‘market rent is’ and so how much rent I will have to pay?

How much rent I will have to pay?

• Landlord issues a notice proposing a new rent
• Failure to respond means proposed rent is taken as accepted
• The tenant must respond and agree or reject proposed rent
• The process allows for a period of negotiation between the parties to try to agree on a new rent
• If an agreement can’t be reached, an independent valuer must be appointed
• Costs associated with the independent valuer’s determination is to be shared 50/50
• Both parties provide the valuer with submissions and have a chance to respond to the other side’s submission before the Valuer makes their final determination.
• The Valuer's final determination becomes the new ‘market’ rent