Open market rent

Open market rent is the most common basis of valuation at rent review (also known as open market
rental value – OMRV). It is commonly defined as the rent at which the premises might reasonably be
expected to let, in the open market, at the review date, on the terms of the hypothetical lease.
Typically, this is framed with primary reference to the terms and covenants of the actual lease of the
premises, although this is not always the case (for example, in relation to the assumed length of
term) and due diligence is essential in understanding the particular definition of open market rent in
any review clause.