Tenants not breaking
Tenants not breaking
- 2004
- Estates Gazette (0449) 4 December 2004, 43(1) .
The latest IPD research shows that only a minority of tenants ever exercise the break clause in their lease. The Strutt and Parker "IPD lease events review 2004", based on analysis of the leases of the IPD databank, revealed that, in 2003, 76% of break clauses, measured by rental value, were not exercised. Of the 24% where a break clause was exercised, half of the units were relet by the end of the year and half were still void. Industrials suffered the highest gross rate of default, of 2% of annual rent passing, double the rate in the office market.
COMMERCIAL LEASES
BREAK CLAUSES
RENTAL MARKET
The latest IPD research shows that only a minority of tenants ever exercise the break clause in their lease. The Strutt and Parker "IPD lease events review 2004", based on analysis of the leases of the IPD databank, revealed that, in 2003, 76% of break clauses, measured by rental value, were not exercised. Of the 24% where a break clause was exercised, half of the units were relet by the end of the year and half were still void. Industrials suffered the highest gross rate of default, of 2% of annual rent passing, double the rate in the office market.
COMMERCIAL LEASES
BREAK CLAUSES
RENTAL MARKET