Turnover-based Leases Survey of Current Practice (October 2021) Summary Report




Summary Report

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

This report summarises the findings of a survey of leading valuers, investors and retail agent 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 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.

The full report will be available shortly.