Despite a good relationship between this landlord and tenant, they could not agree to a new gross annual rental figure at the Market Review, with 5 + 5 + 5 years left on the lease, so the case went to Determination.

The tenant used GEM Lease Analytics™ to evaluate the reasonable rent, and the results were submitted to the determining Valuer. The landlord, on the other hand, provided no justification for keeping the rent at the existing level.

Based on these submissions, the determining Valuer set the gross annual rent at around $400,000, with a 4% annual increase. Over five years, this gave the tenant an overall benefit of more than $600,000, which he could reinvest in the business or take as profit.