Indexed rent review clause based on RPI

by Practical Law Property

A Standard Clause providing an indexed rent review mechanism for commercial leases in England and Wales, structured as a schedule to replace open market rent provisions. This Standard Clause details how to adjust the Annual Rent in line with changes to the Retail Prices Index (RPI). It offers drafting flexibility with options for full indexation, upwards-only increases, or reviews subject to a set minimum rent. It also addresses potential future complications, such as changes to the RPI's compilation or its replacement, by providing a framework for agreeing on an alternative mechanism. In the event of disputes over the reviewed rent or the application of the schedule, this Standard Clause outlines a process for expert determination. Practical considerations, including procedures for late reviews, the payment of interest on shortfalls, and the guarantor's obligations, are also covered. The standard clause is drafted to fit into standard document commercial leases offered by Practical Law Property but can also be adapted for use in other leases.