Rent Review in Commercial Leases: Types and Tenant Strategy

Review types

1. Open-market (upward-only)

   Rent adjusted to 'open market rent' at review date, but cannot decrease below previous rent. Historic default; exposes tenant to significant uplift risk.

2. Stepped/fixed

   Pre-agreed uplifts at each review (e.g. 5-yearly at +10%). Tenant has certainty; landlord bears market-upside risk.

3. RPI/CPI-linked

   Indexed to inflation. Can be one-way (uplift only) or symmetric (rise and fall with index). Typical London modern default.

4. Cap-and-collar

   Index-linked with maximum and minimum movement (e.g. RPI capped at 4%, collared at 1%). Most tenant-friendly common structure.

5. Hybrid

   Combinations — e.g. RPI with open-market review at year 10.

Typical London Q1 2026 norms

• 10-year lease: RPI cap-and-collar or open-market 5-yearly
• 5-year lease: often no review (too short to justify)
• 15-year+ lease: multiple reviews — common open-market at 5 and 10

Tenant negotiation levers

• Swap open-market for RPI-linked
• Add collar to RPI-linked
• Cap uplifts at specified maximum (4%/review common)
• Push review frequency down (5-year → 10-year)
• Agree fixed stepped reviews as alternative

What we do

Rent review timing often triggers renovation or refurbishment. See Office Renovation and Office Refurbishment.

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