Rent reviews for shopping centre space can be something of a lottery, Wendela Raas of law firm Lexence Advocaten & Notarissen has told the Provada real estate fair in Amsterdam. As the average rent levels for the last five years are used in the review process, tenants often don't end up paying the market rate, Raas said. Willem Bouman of Bouman Visscher Van Limbeek told the seminar on rental pricing for shopping centres that this can result in retailers paying above the market rate - in the event that the average rent level is higher than the actual market rent at the time of the review.
Rent reviews for shopping centre space can be something of a lottery, Wendela Raas of law firm Lexence Advocaten & Notarissen has told the Provada real estate fair in Amsterdam. As the average rent levels for the last five years are used in the review process, tenants often don't end up paying the market rate, Raas said. Willem Bouman of Bouman Visscher Van Limbeek told the seminar on rental pricing for shopping centres that this can result in retailers paying above the market rate - in the event that the average rent level is higher than the actual market rent at the time of the review.
In cases of legal disputes about the correct rent level in the Netherlands, the judge seeks a report, usually compiled by one to three experts. Raas said the report's recommendation is based on a comparison with the rent levels at other properties. This can give rise to the greatest lottery element as the choice of properties for the comparison can be arbitrary. 'The most important task for the lawyer in this process is to supervise the experts,' Raas said.
