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Real Estate

  Real Estate   |   Terms
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  • October 28, 2021
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Reversion

A jargon term for change in rents upon lease renewal, particularly reflecting the estimated increase (or decrease) in a property’s rent at review where the gross rent is below (above) the estimated rental value. Positive reversion takes place when there is an estimated increase in rent at review where the gross rent is below the estimated rental. Negative reversion arises when there is an estimated decrease in rent at review where the gross rent is above the estimated rental.

Reversion is one of the key indicators that investors use to assess the business performance of a lease.

It is also known as a rental reversion.


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