AG urged to tackle rent reviews

ONE of the main representative bodies for the retail industry has called on new Attorney General, Maire Whelan, to tackle the ongoing issue of commercial rent rates by introducing legislation ending upward-only rent reviews for existing leases.

Such a move, according to IBEC-affiliated body Retail Ireland, is urgently needed and should be accompanied by the establishment of a commercial rents assessment board, something which should be chaired by a High Court judge and have statutory powers, where tenants could seek rent reductions to reflect economic circumstances.

“As it stands, there is no self-correcting mechanism available for inflated commercial rents. Over the last decade rent as a percentage of turnover has doubled from 10% to 20% for retailers. Upward-only rent reviews have not only contributed to this inflation, but have contributed significantly to the loss of over 50,000 jobs in the retail sector since 2008,” according to Retail Ireland director, Torlach Denihan.