Property Leases with “Staircased” Rents: Some Specialist Market Applications

Abstract

Discusses how over the last few years a form of property lease has been developed which is characterized by having predetermined levels of rental uplift, rather than relying on open market or other forms of rent review. Argues that this establishes a rent review formula for categories of building without a rental history, which may not have direct comparables in the locality and that the result is a “staircased” rental lease which has a number of specialist applications. Points out that, in addition to aspects of the traditional commercial markets (offices, retail, industrial) where this technique may be useful, it is especially appropriate for particular market areas such as education, social housing, nursing homes, hotels and car parks; it is also useful for property provision for use by NHS trusts and health authorities. Examines the staircased rental technique and gives some comments on these factors.

Citation

Murdoch, G. (1994), "Property Leases with “Staircased” Rents: Some Specialist Market Applications", Journal of Property Finance, Vol. 5 No. 3, pp. 33-40. https://doi.org/10.1108/09588689410078575