Space's Increased Value Didn't Raise Rent Rate

Space's Increased Value Didn't Raise Rent Rate



Facts: A luxury retailer (subtenant) subleased space for its flagship store. The sublandlord was an affiliate of the owner of the building. The sublandlord informed the subtenant that the property would be redeveloped in two years, and, in the meantime, the subtenant would have to pay substantially increased rent—one reflecting a higher fair market value revealed by a property appraisal. The subtenant objected. The sublandlord informed it that it was in default and its sublease would be terminated.

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