Leasing a commercial premises is one of the biggest commitments you will make as business. Aside from ensuring the property location & lease length align with your companies goals there are other considerations that you need to consider to avoid problems later on:

1) Repairing Obligations

Clarifying the position on this is crucial. Are you signing up to a Full Repairing and Insuring (FRI) lease where you will be responsible for repairs? If so your business could be in for a shock unless money is set aside for a settlement or the cost of repairs budgeted for.

Top Tip – Ensure you have a photographic schedule of condition in place to document the condition at the commencement of the lease to avoid disputes at the end of the term.

2) Rent Negotiation

Effective negotiation begins with thorough market research. When negotiating consider the entire lease package, not just the base rent. Other aspects to consider are lease length, break clauses, incentives, repairing obligations, business rates & service charges which all effect the profile and total occupational cost of the transaction.

3) Rent Reviews

Understanding the different types of rent reviews is crucial as they outline how and when the rent will be adjusted during the lease term.

Fixed increases, index-linked (typically to CPI) and (most commonly) open market rent reviews are used. Could be worth trying to negotiate the frequency of reviews to ensure they align with business cycles / financial planning within your business. Will the landlord agree to a cap?

If you’re currently planning to relocate your business and you need some expert help, you’ve come to the right place. Whether you need a new office, industrial, retail or lab space, we can help.