How Do Commercial Rent Reviews Work in Ireland?

A commercial rent review is the contractual mechanism that adjusts the rent payable under a lease, usually every five years, to reflect current open market rental value. In Ireland most reviews are to open market rent, agreed between landlord and tenant or, failing agreement, decided by an independent arbitrator or expert.

What is a commercial rent review?

A rent review lets the rent under a commercial lease be reassessed at fixed intervals set out in the lease, keeping it broadly in line with the market over what is often a long term. The review changes only the rent, not the other lease terms.

How often can rent be reviewed?

The interval is governed entirely by the lease. The Irish market convention is a review every five years, though some leases provide for three-yearly or annual reviews. There is no statutory interval, and if the lease contains no review clause there is no automatic right to review.

What basis is used to set the new rent?

The most common basis is open market rent: the rent the property would achieve if let on the open market on the review date, applying the assumptions and disregards set out in the lease. Other bases are used but open market review is the Irish default for commercial property.

• Open market review — to current market rent, the dominant approach.

• Index-linked — tied to the Consumer Price Index or a similar index.

• Turnover rent — a base rent plus a percentage of the tenant's turnover, common in retail.

• Fixed or stepped — pre-agreed increases written into the lease.

Are upward-only rent reviews still allowed?

For commercial leases created on or after 28 February 2010, upward-only rent review clauses are prohibited under section 132 of the Land and Conveyancing Law Reform Act 2009, so the rent can move down as well as up at review. Leases created before that date may still contain enforceable upward-only clauses, which is why the lease date matters so much.

The rent review process, step by step

• Trigger: one party, usually the landlord, serves a rent review notice if the lease requires one.

• Proposals: each side, often through a surveyor, puts forward a rental figure supported by comparable evidence.

• Negotiation: the parties try to agree the revised rent.

• Third-party referral: failing agreement, the lease specifies referral to an independent arbitrator (under the Arbitration Act 2010) or an independent expert.

• Determination: the third party fixes the rent, which applies from the review date, usually with interest if settled late.

Why timing and comparables matter

The new rent is assessed as at the review date, so evidence of lettings and reviews around that date is critical. Strong comparable evidence — recent open-market lettings of similar space in the same location — is usually the single biggest factor in the outcome. Both landlords and tenants benefit from professional advice before, not after, exchanging figures.

How HPS can help

HPS Real Estate acts for both landlords and tenants on commercial rent reviews across Ireland, from assembling comparable evidence and negotiating settlements to representing clients at arbitration and expert determination. For advice on a specific review, contact our team.

Frequently Asked Questions

How often can commercial rent be reviewed in Ireland?

As often as the lease specifies; the market norm is every five years. There is no statutory minimum or maximum, and if the lease contains no review clause the rent stays fixed for the term.

Can commercial rent go down at a review?

Yes, if the lease was created on or after 28 February 2010, because upward-only reviews are banned for those leases. Older leases may legitimately prevent the rent from falling.

Who decides the new rent if landlord and tenant cannot agree?

An independent third party named in the lease — either an arbitrator appointed under the Arbitration Act 2010 or an independent expert — determines the reviewed rent.

Do I need a surveyor for a rent review?

It is strongly advisable. A chartered surveyor assembles comparable evidence, advises on the correct figure, and conducts the negotiation or third-party referral, which usually pays for itself in the rent agreed.