Rent valuation – Robert Hay KC Blog

November 13, 2025

How to ensure that terms implied by the Retail Leases Act 2003 (Vic) into a “retail premises lease” do not appear in a renewed lease which is not a “retail premises lease”

My last post considered Richmond Football Club Ltd v Verraty Pty Ltd [2019] VSC 597 (Verraty) with particular reference to this question: Do terms implied into a “retail premises lease” by the Retail Leases Act 2003 appear in a renewed lease following the exercise of an option where the renewed lease is not a “retail premises

Valuers must furnish detailed reasons for rental determinations under Retail Leases Act

Valuers determining the “current market rent” rent under leases concerning retail premises must ensure that the valuation: contains “detailed reasons” for the determination; and “specify the matters to which the valuer had regard in making the determination”. See: s.37(6)(b) and (c) of the Retail Leases Act 2003. Both requirements must be met; a determination that

“Profits method” of rental valuation does not breach s.37 of Retail Leases Act 2003

The question of whether the “profits method” of determining rentals for hotel premises contravenes s.37(2) of the Retail Leases Act 2003 (Vic) has finally been determined by the Supreme Court of Victoria. Under the “profits method” the valuer estimates the income and expenses of the business with the difference between the two estimates being the