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Growing discussions are taking place on commercial rent readjustment by the index
12/30/2020
The sharp increases in the General Price Index - Market (IGP-M), affected the leasing of large corporate slabs due to the pandemic increasing discussions between landlords and tenants concerning the full use of the annual indicator for the review of the contracts.Some commercial property companies, such as Cyrela Commercial Properties (CCP) and São Carlos Empreendimentos e Participações, evaluate, according to a market source, the possibility of adopting the Broad National Consumer Price Index (IPCA) as an index for readjustments in new lease agreements.
“Some new contracts are using the IPCA, but there is still no consensus on what the new reality will be”, says the president of the research firm SiiLA, Giancarlo Nicastro. According to him, there is an agreement between owners and tenants not to pass on the entire IGP-M. “But the discount becomes a fine if the tenant leaves before the term of the contract”.
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