Turnover-based Leases Survey of Current Practice (December 2021) Full Report




Full Report

While widely reported, the move towards turnover-based leases, accelerated by the pandemic, has been accompanied by little analysis to date of the motivation behind the adoption of these leases and the implications for both valuation and investment.

This report provides details of the findings of a survey of leading valuers, investors and retail agents to identify the prevalence of turnover-based leases and whether they are a short-term phenomenon or a growing trend that will become a more common feature in the UK market.

The first part of a two-stage examination (the second of which considers the implications of turnover-based leases for the calculation of worth for investors), this report also explores the ability of current valuation models to adapt to turnover-based leases and the consequences for the calculation and interpretation of published yields and rent series.

A Summary and At a Glance précis of the research are also available to download from the website.