Turnover rents are on the rise

Agreed annual rents are increasingly being replaced by rents based on the sales or turnover of an outlet, writes Donal Buckley.

22nd June, 2014

Investors considering buying retail property investments or shopping centres have to tread carefully when assessing how much to value outlets whose rent is determined by the sales or turnover performance of the outlet. Unlike traditional Irish leases where a rent is fixed for five years, with turnover rents the amount can vary from year to year and, as a result, so can the value of the property.

This is increasingly becoming an issue at a...

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