Over the past year, I’ve watched the commercial property landscape shift in ways that make leasing a mixed-use tower a genuinely different proposition than it was even two years ago. The government’s surprise proposal to ban upwards-only rent reviews in new and renewal commercial leases, tucked into the English Devolution and Community Empowerment Bill, caught the industry off guard. If enacted, that single change would rewrite the financial logic of every lease signed from that point forward. Here’s what you actually need to know.
Mixed-use towers — buildings that combine retail, office, and sometimes residential space under one roof — sit right at the intersection of all these changes. The ground-floor retail unit faces different rent review rules than the office floors above, and the service charge structure has to account for everything from lift maintenance to waste disposal across multiple use types. If you’re looking at one of these buildings, you need a lease that handles that complexity without leaving you exposed. I’ve seen too many tenants sign up thinking a standard commercial lease will do, only to discover the hard way that mixed-use brings its own set of rules. For a broader look at what’s changing across the sector, the future of UK commercial rent trends covers the big picture.
What a mixed-use tower lease actually involves
The first thing to understand is that a mixed-use tower isn’t just a bigger version of a standard commercial lease. It’s a layered agreement where different parts of the building operate under different rules. The retail unit on the ground floor might have a lease with full repairing and insuring obligations, while the office floors above could be let on a service-inclusive basis. The residential element, if there is one, sits under entirely separate legislation. The complication comes when those different lease structures share the same building infrastructure — lifts, heating systems, fire escapes, waste management. Who pays for what, and how is it apportioned?
That’s where the updated RICS Professional Standard on service charges becomes critical. The code, which took effect on 31 December 2025, is compulsory for all RICS-accredited professionals and sets out clear expectations for transparency, timeliness, and fairness. It doesn’t override your lease terms, but it gives you a benchmark to hold your landlord to. If your service charge budget arrives late, or the year-end certificate is vague, you have a standard to point to. My advice: ask your solicitor to check whether the lease references the RICS code, and if it doesn’t, push for an amendment. For more on how to handle this side of things, ensuring service charge transparency walks through the practical steps.
Why the proposed rent review ban changes everything
The government’s proposal to ban upwards-only rent reviews in new and renewal commercial leases is the most significant shift in landlord-tenant economics in decades. Under the current system, an upwards-only clause means your rent can only go up or stay the same — it can never fall, even if the market drops. That strongly favours landlords, as the Law Commission itself acknowledged. The ban, if enacted, would mean future rent reviews could go up, down, or stay flat, based on open market conditions.
For a mixed-use tower, the impact varies by floor. The retail unit on the ground floor, which typically commands the highest rent per square foot, would be most exposed to downward pressure if the high street continues to struggle. The office floors above might see less volatility, but the principle applies across the board. The Bill is currently at committee stage in the House of Lords, and while it could become law in late 2026 or 2027, the timing is uncertain. What I’d do in your position: if you’re negotiating a new lease now, consider whether a shorter initial term gives you more flexibility to renegotiate under the new rules once they’re in force.
There’s also the question of how lenders will react. Upwards-only rent reviews have historically provided predictable income streams that underpin commercial property valuations. Remove that certainty, and the lending landscape could shift. If you’re financing the fit-out of your tower space, your bank may take a different view of the landlord’s income stability. It’s worth discussing with your finance team now, rather than discovering the issue when you’re halfway through negotiations.
Where tenants get tripped up
I’ve watched enough lease negotiations to spot the patterns. Here are the mistakes that come up most often in mixed-use tower deals, and how to avoid them.
Treating the service charge as a fixed cost
In a mixed-use building, the service charge can vary significantly from year to year, especially if the building has complex systems like central heating and cooling, multiple lifts, or shared security. The updated RICS code requires budgets and year-end certificates to be delivered in a timely manner, but it doesn’t cap the amount. If the landlord hasn’t budgeted properly for lift maintenance or fire safety upgrades, you could face a large supplementary charge. What I’d do: ask for a five-year service charge history before you sign, and check whether the lease includes a cap on annual increases. If it doesn’t, negotiate one.
Ignoring the energy performance timeline
The government remains committed to net zero, and the consultation on changes to Energy Performance Certificates closed in February 2025. Revised minimum ratings are planned by 2030. If your tower’s EPC is below the new threshold, you may not be able to let the space — or renew your lease — after that date. That’s a problem if you’re signing a ten-year lease today. Check the current EPC rating and ask the landlord for their upgrade plan. If they don’t have one, factor the cost of potential improvements into your rent negotiation. For more on how sustainability is shaping rents, sustainability’s impact on commercial rent prices is worth a read.
Overlooking the security of tenure changes
The Law Commission’s phase 1 consultation on Part 2 of the Landlord and Tenant Act 1954 concluded that the current contracting-out model strikes the right balance. But the phase 2 consultation, expected this spring, is likely to propose increasing the minimum term for protected tenancies from six months to two years. If you’re planning a short-term lease for a pop-up retail unit or a temporary office, that change could lock you in for longer than you want. Make sure your solicitor structures the lease to give you the flexibility you need, whether through a break clause or a carefully drafted contracting-out agreement.
→ Scroll right to see all columns
| Reform area | Current status | Expected timeline |
|---|---|---|
| Upwards-only rent review ban | Committee stage in House of Lords | Late 2026 / 2027 |
| Security of tenure minimum term | Phase 2 consultation expected spring 2026 | Proposed increase to 2 years |
| EPC minimum ratings | Consultation closed Feb 2025 | Revised ratings by 2030 |
| RICS service charge code | Effective 31 Dec 2025 | In force now |
Assuming the lease covers all use types equally
A mixed-use tower might have retail on the ground floor, offices on the middle floors, and residential or leisure space at the top. Each use type has different regulatory requirements — fire safety, waste disposal, opening hours, noise restrictions. If your lease doesn’t clearly define which parts of the building you’re responsible for and which are shared, you could end up paying for services you don’t use or being restricted by rules designed for another use type. Get a solicitor who specialises in commercial property to review the lease clause by clause. If you don’t have one yet, a tenant landlord lawyer can help you spot the gaps before you sign.
How to negotiate a mixed-use tower lease in 2026
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Here’s the practical playbook I’d follow if I were negotiating a mixed-use tower lease right now. Each step addresses one of the changes coming down the track.
Lock in a flexible rent review mechanism
With the ban on upwards-only reviews potentially on the horizon, you don’t want to sign a lease that locks you into the old system for ten years. Negotiate a rent review clause that allows for downward adjustments based on open market conditions, even if the ban hasn’t passed yet. Some landlords may resist, but you can point to the Bill as evidence that the market is moving in this direction. If they won’t budge, consider a shorter initial term with an option to renew, so you’re not stuck if the rules change. A property lawyer can draft the clause to give you maximum protection.
Get the service charge structure in writing
The updated RICS code sets a new benchmark, but it’s not legally binding unless your lease references it. Ask your solicitor to include a clause that requires the landlord to comply with the RICS Professional Standard on service charges. That gives you a clear framework for budgets, year-end certificates, and dispute resolution. Also, request a detailed breakdown of how service charges are apportioned across the different use types in the building. If the retail unit is subsidising the office floors’ lift maintenance, you need to know about it before you sign.
Plan for the EPC deadline now
The 2030 deadline for revised minimum EPC ratings is closer than it sounds, especially if your lease runs for ten years. Ask the landlord for the current EPC certificate and a written commitment to meet the new standards by the deadline. If they can’t or won’t provide it, factor the cost of potential upgrades into your rent negotiation. You might also want to include a break clause that lets you exit if the building fails to meet the required rating. For a deeper dive into how these changes affect leasing decisions, ten tips for renting commercial space covers the essentials.
Structure your lease term around the security of tenure changes
If the Law Commission increases the minimum term for protected tenancies to two years, short-term leases will become harder to secure. If you need flexibility — for a pop-up, a pilot office, or a seasonal retail unit — make sure your lease includes a well-drafted break clause. The break clause should be unconditional, or at least subject to conditions you can control, like paying rent up to date and giving vacant possession. Avoid break clauses that require you to comply with all lease covenants, as that gives the landlord grounds to argue you haven’t met the conditions.
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1Review the rent review clauseCheck whether it’s upwards-only or allows for downward adjustments. If it’s upwards-only, negotiate a change or a shorter term.
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2Request the service charge historyAsk for five years of budgets and year-end certificates. Compare them to see if costs are rising faster than inflation.
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3Check the EPC rating and upgrade planGet the current certificate and ask the landlord for their plan to meet the 2030 standards. If there’s no plan, negotiate a break clause.
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4Instruct a specialist solicitorMixed-use tower leases are complex. A solicitor who knows the latest reforms can spot issues a general practitioner would miss.
Frequently asked questions
Can I still sign a lease with an upwards-only rent review before the ban passes? ▾
Does the RICS service charge code apply to my landlord if they’re not RICS-accredited? ▾
What happens if my building’s EPC rating doesn’t meet the 2030 minimum? ▾
Can I break a lease if the security of tenure rules change during my term? ▾
How do I know if a property is listed as an Asset of Community Value? ▾
The next twelve months will shape commercial leasing for years to come. The proposed ban on upwards-only rent reviews, the tightening of security of tenure rules, and the approaching EPC deadline all point in one direction: leases are becoming more balanced, but also more complex. My advice is to start your negotiations early, bring in a specialist solicitor, and build flexibility into every clause you can. If this was useful, you might also want to read tips for renting a high-footfall commercial space.
Sources and Further Reading
The rise of serviced offices — Explores how flexible workspace models are reshaping commercial leasing for startups and growing businesses.
Real estate update and 2026 expectations. Clarks Legal, 2026.
UK real estate sector 2026 and beyond. Charles Russell Speechlys, 2026.
