An historic term, still in common use in rent review clauses of modern leases, to the effect that the rent is at a full open market level. A 'rack' rent is one which has been 'stretched' (derived from the medieval torture instrument) to the full extent which could reasonably expected on an open market letting.

Modern office buildings have floors raised above the structural slab, to provide ease of access and enable a high degree of flexibility in the positioning of floor boxes for telecomms and computer networks.

This is the assessment required of any non-domestic property (with some exceptions) under statute and is supposed to represent the rental value of any unit of assessment (hereditament) at the prescribed valuation date, subject to assumptions about repair on a full repairing and insuring basis. The tenancy assumed is from year to year with a reasonable prospect of continuance.

There are certain statutory exemptions from rates.

A rating liability is a charge based on the occupation of commercial land and buildings, administered by the local authority. Separate arrangements exist for Scotland and Northern Ireland.

This is the national list of all assessments (apart from those relating to utility/national networks contained within the central list). The list is available through the Valuation Office website

The RICS 'Red Book' contains rules and practice statements for all Chartered Surveyors who undertake asset and other forms of formal types of valuation.

Reinstatement refers to the tenant's liability to remove its alterations at lease expiry, and reinstate the premises to their original condition, as at lease commencement. If carried out under licence, there will usually be an express covenant to reinstate in the licence in addition to the 'general' obligation to do so in the Yielding Up clause. Frequently encountered in dilapidations cases, where the landlord's claim for damages, based on the cost of reinstatement, is subject to a Diminution in Value test (under common law principles rather than statute, as for repairs).

The consideration paid by the tenant to the landlord for the ability to occupy premises under a lease.

A rent review is a periodic review (usually five yearly) of rent during the term of a lease. The vast majority of rent review clauses require the assessment of the open market, or rack rental value, at the review date, in accordance with specified terms, but some are geared to other factors, such as the movement in the Retail Price Index.

Repair covenants are the contractual obligations in a lease which identify the landlord and the tenant's liabilities to repair.

A repair notice usually takes the form of an interim schedule of dilapidations. The intention of the repairs notice is to highlight to the landlord or tenant breaches of the lease during the term. They are frequently used in conjunction with Jervis v Harris provisions (see “Jervis v Harris”).

A covenant that imposes a restriction on the use of land to enable the value and enjoyment of the land to be preserved.

The Retail Price Index (RPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services. The RPI is used to track price changes associated with the cost of living. In the commercial property market leases are often granted with rent reviews occurring by reference to the RPI (or occasionally the Consumer Prices Index) (normally on an upwards only basis). Unlike the CPI Index, the RPI includes mortgage payments. The RPI was first introduced in 1947 and was for many years, the Government’s main measure of inflation. In 2003 the Government announced that the UK inflation target would be based on the CPI, replacing the RPI for this purpose.

Revenue per available room (RevPAR) is one of the standard benchmarking measures in the hotel industry. However, it is not straightforward as the revenue is related to room-generated revenue rather than total revenue. It is calculated by taking all rooms revenue and dividing by the number of bedrooms. It can also be calculated by multiplying the ADR (or ARR) by the occupancy rate.

A method for valuing trading properties, including public houses, bingo, hotels and marinas, by adopting an accounts method of assessment in the absence of rental evidence.

The opposite of a premium payment on assignment; instead of the outgoing tenant (assignor) receiving a lump sum for the Lease, it pays the replacement tenant (assignee) to take the lease on.

A measure of investment analysis showing the relationship between the capital cost of acquisition and the estimated rental receivable at the next lease event.