Rent Judgement Significant But Unlikely To Have Widespread Implications Say CBRE
Dublin, 25th March 2013 – Commercial property consultants CBRE this afternoon commented on today’s High Court judgment involving a rent review on Bewley’s Café on Grafton Street, which they say will lead to greater scrutiny of lease documentation for leases that incorporate upwards only rent review provisions.
In today’s case, the High Court judge ruled that the rent review on the premises remains upwards only but from the date of the original lease grant in 1987 as opposed to the most recent review date.
According to Marie Hunt, Executive Director at CBRE “Many landlords of properties that are subject to upward only rent reviews and intending investors are rightfully questioning today’s ruling fearing that rents on leases with upward only rent review clauses will now revert to open market value as a result of this judgement. However, it is important to point out that there are unique circumstances in this particular case given the specific wording of the review clause, which will not necessarily apply in other leases. This ruling highlights the importance of the drafting of specific clauses in leases and will undoubtedly lead to more scrutiny of lease documentation going forward”.
For further information:
Marie Hunt – 00 353 1 6185543 / 00 353 87 2727115 or email@example.com
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com
In Ireland, with offices in Dublin and Belfast, CBRE is the country’s largest commercial real estate services company, now employing over 110 employees and offering a full range of property services including property sales and acquisitions, leasing and management, investment, corporate services, debt advisory, project management, consultancy, valuations and research. Please visit our website at www.cbre.ie or www.cbre.ie/ni