Commitments in a commercial property tenancy in London

There will be many important aspects of your commercial property lease, but two stand head and shoulders above the rest:

How many years of commercial property tenancy in London are you prepared to commit yourself to?

How much responsibility are you prepared to take on in the maintenance of the commercial property in London – either carrying out works yourself or paying for others to do it?

The first, length of commercial property tenancy, may well be the first thing that you and your landlord have very different ideas about. It’s in the landlord’s interest to secure a trustworthy tenant for as long as possible to guarantee income from their commercial property. However, it may be too much of a commitment for a business owner to say that they will have the same commercial property needs in ten, twenty or twenty five years time.

Once you have your ideal commercial property tenancy duration in mind, it’s best to discuss it thoroughly with your commercial property agent and solicitor before negotiating with your landlord. It may be possible that the commercial property is in an area which is likely to always be in demand so you could always sub-let if your needs change radically in the future. Your commercial property agent will be able to advise you on this, and your solicitor will be able to explain the terms regarding that possibility in the draft lease. This is just one example of how you may be able to be more flexible and thus reach an agreement with the commercial property landlord with the minimum amount of disagreement.

In terms of commercial property maintenance in London, it’s likely that the landlord will want you to have more responsibility in the equation as it increases profits earned from the commercial property. The condition and age of the property, or time since refurbishment are all going to be factors here, and taking good advice from your expert commercial property team is essential. If you will be expected to maintain the property, you need to have a good idea of what that will entail. If there is a service charge instead you need to be absolutely sure of what you’ll be paying for and whether all of the commercial property maintenance needs will be covered by it.

It ultimately comes down to the particular commercial property and market conditions. Sometimes these factors work in favour of the commercial property tenant, sometimes the landlord, but either way, having the right information and the right people in place when you start commercial property lease negotiations will enable you to achieve the best possible tenancy agreement for your chosen commercial property. Feel free to get in touch with us to discuss your commercial property tenancy negotiation needs.

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Commitments in a commercial property tenancy in London

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