Turnover rents – the new normal for the High Street

The experience of the Covid-19 pandemic intensified and accelerated what was an existing trend in the retail and hospitality sectors, towards turnover rents.  Both landlords and tenants are seeking ways to support businesses, and switching from open market rental to a turnover-based arrangement is an increasingly popular way of assisting tenants, which has the added advantage of being relatively familiar.

This webinar includes consideration of recent caselaw and considers the principles of turnover-based rent in outline, while looking critically at the balance of risk, and also considering whether such arrangements need to be as complex as has traditionally been the case.

This webinar will cover the following:

• Advantages and disadvantages of turnover rents, for landlords, tenants and lenders
• Calculation of turnover rent
• Ability to revert to an open market rent
• Implications for alienation, rent review, break options and user restrictions
• Turnover rent arrangements in a lease renewal