September 2019 | Perry Hill

Whether you’re starting a new venture, expanding your operations, looking to downsize, or moving to a new location, finding the right commercial premises is critical. Having a good chartered surveyor on your side can save you time, money and hassle during this process – and throughout the lifecycle of your occupancy. Here’s how.

Finding and assessing properties

(commercial agency services)

Chartered surveyors are property experts. So it makes sense that they assist with property search and selection, helping businesses with both lettings and property sales. At Perry Hill, we’ve found this approach brings big benefits; for example, when it comes to negotiating rent or assessing the condition of a property, we have an in-depth idea of the market and building. This helps the client avoid paying too much (in terms of rent or sale price), and helps reduce the risk of acquiring a property with defects.

Mitigating risk

(dilapidations and repair)

You’d expect to have a building survey done before purchasing a home, but did you know chartered surveyors regularly carry out building surveys on commercial lettings, as well? Many commercial tenants opt to have a building survey completed before they take on a new lease because it can save a fortune in unexpected repairs. It also helps to reduce the risk of inheriting repair obligations from a previous tenant.

Another way to reduce risk in commercial lettings is to get a surveyor to draw up a Schedule of Condition at the start of the lease. This forensic report on the property’s condition – including detailed photographs – acts as a contractual agreement between the tenant and landlord, and clearly defines the condition of the property. This serves to limit the tenant’s obligations to repair or maintain the property, and protects both parties against future disputes.

Negotiating a fair rent

(market value)

Engaging Perry Hill as rent review surveyors is a great way to ensure you’re not paying over the odds for your commercial premises. During the rent review, a chartered surveyor will assess the rental value of the property, taking into account valuation standards and current market conditions, then provide a detailed report on its rental value – a vital tool for rent negotiations, be they at rent review or lease renewal.

If you’re looking for new commercial premises, Perry Hill Chartered Surveyors can support you with the search and selection, carry out building surveys and inspections, and provide trusted rent reviews. What’s more, our experienced surveyors are accredited by RICS, the Royal Institution of Chartered Surveyors, meaning you can count on getting accurate, fair advice every time.

Why do you need a break clause?

The break clause can be one of the most difficult elements to negotiate in a commercial lease. Yet, there are clear benefits to both tenants and landlords. For the tenant, a break clause gives a certain amount of flexibility to react to market conditions – for example, by downsizing (or perhaps moving to a bigger space) as the business demands. It’s a much-needed safety net for tenants, particularly in unpredictable times like these.

And what about landlords? Surely they want to hang onto tenants for the full term of the lease? For the most part, that’s true. However, sometimes a landlord may want to redevelop or sell the property before the end of the lease. The break clause gives them that opportunity.

The potential pitfalls of a break clause

The idea behind the break clause may be simple, but the reality is often more complex than people expect. The courts deal with a surprising number of disputes over commercial lease break clauses – specifically, exercising a break clause to end a lease early.

In many of these cases, the break clause has been drafted in such an ambiguous way, it makes it difficult to exercise the clause in practice. Or sometimes the procedure for exercising the break clause hasn’t been properly followed, or certain conditions haven’t been met. Whatever the underlying reason, these disputes can be extremely costly.

Therefore, when you’re negotiating a new commercial lease, it pays to give your break clause plenty of attention, and seek specialist advice on whether it really protects your interests. It could save you a great deal of money and legal wrangling further down the line.

At Perry Hill Chartered Surveyors, we work with both tenants and landlords across London and the South East to agree unambiguous break clauses in commercial leases. From leisure and retail premises, to offices, industrial warehouses and mixed-use schemes, our team will ensure your commercial lease works for you. Talk to us about your commercial lease needs.

Month: September 2019

Looking for new commercial premises? A chartered surveyor is worth their weight in gold