Are you the landlord in a commercial lease? Or maybe you are the
tenant of business premises? You should be aware of the potential
complications surrounding market rent reviews and how they can be
avoided.
The recent case of Data Base Corporate Pty Ltd v Strike
Australia Pty Ltd (2019), involving a well-known bowling
chain, is an example of why it is important to be familiar with the
terms of your lease, whether you are the landlord or tenant, and
that legal advice should be sought at each stage of the lease, not
just at its commencement.
In this case, Strike was the tenant and had just renewed their
lease in Darling Harbour under an option. A valuer was appointed to
determine the fair market rent for the upcoming period. The
valuation was lower than the landlord expected, who then made a
claim that the valuation was not carried out in accordance with the
provisions of the lease, and that the rental determination should
be set aside. The valuation was conducted by
