Key case Shatters Irish Upward-only-rent-reviews

Despite ‘incompatibility with constitution and expense of implementation…’, a landmark court case is potentially a major development in Irish case law which puts in doubt the ability of a commercial landlord to enforce so-called “Upward Only Rent Review” terms in pre-February 2010 leases.

Apart from refusing to allow the enforcement of the UORR clause, the Judge has apparently ordered the rent to fall to current market levels, which are more than 50% less than peak rents in 2006-8. This judgement could affect all other similar leases in Ireland, making retail rents more manageable for businesses throughout the country.

As additional details of the judgement of 25th March become available, it appears likely that the judgement will be appealed. Hopefully, common sense will prevail in abolishing UORRs, effectively removing what is a partial cause of the current high shop vacancy rate in Ireland...

Those with interests in the Irish market can access full details including the final judgement here 

“They were told to shag off* by both Irish and UK landlords.”

This perhaps give some indication of the gulf that currently exists between landlords and retail tenants in the UK and Ireland ref a more entrepreunerial approach to sharing the commercial risk in property usage by negotiating a combination of low rent and a % share of turnover, as per the US model.
Larry Brennan of Savills quoted landlord reaction in the Irish Times (8/04/09). He says companies formed to take over some of the UK multiples which had gone into administration had sought permission from the landlords to switch to a rent payment based on 3–7 per cent of the turnover.
A great many landlords have been approached to reduce rents and while some are apparently willing to consider it – rather than the prospect of a lengthy rent void – the institutions which own most of the buildings are generally unresponsive because of the likely knock-on effects on their pension funds i.e. the valuation of a property as an asset is put in the books at its rental value, therefore reductions in rental effectively reduces the value of the assets of the institution (i.e. bank!), something they don't need at the moment....
Hence the impact on us all (retailers, suppliers, consumers/tax payers), as the banking system is forced to join us in the real world...

* Old Irish expression often used interchangeably with "Go forth and multiply" to indicate a slight unwillingness to negotiate....