Rent Proportion for Commercial Leases

20 April 2020

What is a fair proportion of rent for a commercial lease?

The issue of paying rent for a commercial lease has arisen again – the last time being when the 2010/2011 Canterbury earthquakes struck. For both landlords and tenants this is a stressful time.


The standard ADLS Commercial Lease 6th edition 2012 form under clause 27.5(c)  states: 


"when a building is inaccessible then a fair proportion of the rent and outgoings shall cease to be payable for the period commencing on the date when the Tenant became unable to gain access to the premises to fully conduct the Tenant’s business from the premises until the inability ceases.”


The issue of determining a “fair proportion” relies on many factors which are important to be discussed to reach an optimal outcome. Feel free to book a FREE 15 minute consultation with David Houston to discuss your commercial lease, which you can book here


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