RONAN WEBSTER, executive director of agents CB Richard Ellis, has predicted that the planned Government legislation to retrospectively remove upwards-only rent reviews could be slowed down because of the potential €5 billion hit to taxpayers as a result of further losses in property values in the banks and Nama.

He told the Irish Property Facilities Management Association that while the legislation is awaited, owners could not trade their income-producing assets and occupiers and tenants were not in a position to sit down with their landlords and negotiate.

Notwithstanding the proposed legislation, there was potential for tenants and landlords to negotiate leases even before they expired through a process known as “blend and extend”. Under this system, rent was reduced in return for agreeing to extend the term of the lease.

Webster said that while many tenants were not comfortable leasing space from some landlords, they were happy to lease from corporations who wanted to sublet space. This was creating an opportunity for corporate occupiers to reduce overheads.