The Notable Change of Factors

Practical application:

Under this ruling, the landlord must prove the new metro station is likely to have a favourable impact on Sophie’s bakery activity. Sophie should gather evidence such as footfall data or customer surveys to show her business relies on local residents who already use the street, not metro commuters. If the change does not clearly benefit her specific trade, the rent cap remains, and the increase cannot be applied.

Practical application:

Marc can rely on this judgment if he demonstrates that the pedestrianisation directly increases the potential customer base for the fashion boutique. He should collect data showing increased pedestrian flow, new shop openings nearby, and improved turnover for similar businesses. If the changes are objectively favourable to the tenant's activity, Marc can successfully uncap the rent and negotiate a higher renewal rent.

Practical application:

Alice should examine whether the redevelopment is likely to have a favourable impact on the grocery’s business. She must analyse if the tram line and students will boost sales (e.g., convenience purchases). If the tenant’s turnover is likely to rise, this ruling supports lifting the cap. Therefore, before purchasing, Alice should commission a market study to assess the future commercial potential, as this directly affects the property’s rental value and investment return.