In 2009 Section 132 of the Land and Conveyancing Law Reform Act was passed and it banned  any upward rent reviews taking place until February 2015 and prohibited all new commercial leases from 2010 containing upward-only rent reviews.   This key date has now passed and with the improvements in the Irish economy, rent reviews are quickly becoming the hot topic. Hammerson has just announced that it has  secured 11 per cent average increase at their Dundrum Town Centre Shopping Centre.  Figures such as these will certainly continue to encourage foreign interest in investing in Ireland’s  premier shopping centres.

A lot of the retail leases pre-date the legislation and therefore they  still contain  upward only rent reviews.  However what is very interesting is many premier Irish shopping centres, the standard retail lease contains a landlord- only  trigger  rent review.  The effect of this is that in a falling market a tenant will be prohibited from calling for the  review and therefore it shall loss its ability to have its rent reviewed downward.  With the improving economy and again increasing rents, we are now less likely to see a tenant challenge its landlord in court as to the validity of these rent reviews.