Arbitration matter. Tenpin Bowling. Current market rent. Action launched in District Court.
Complexity: 8 / 10
Parties to Dispute:
Parties legally represented by established law firms.
Establish current market rent for highly specific use (sporting facility).
Description of Dispute:
Original rent was $215,000. On exercising option proposed rent $220,000. Location extremely poor. Possible/potential threat of new competition from better located/newer facility. Evidence sourced from market.
Landlord’s and Tenant’s experts agreed on current market rent without going to hearing.
New rent just over $120,000, based on evidence relative to permitted use, location of premises, etc.
Inflated rents may significantly inflate the value of any property. Prior to acquiring an investment property, it is strongly suggested that one tests the veracity of the leases and the rent levels.