Commercial Tenant Rights and Obligations When Taking on a Lease of Newly Built Property
Commercial Tenant Rights and Obligations When Taking on a Lease of Newly Built Property
Many of the considerations that apply to taking a lease of any building would apply to a lease of a new building. The key difference relates to:
1. The repair and service charge of the building2. What the tenant is to be liable for
Commercial tenant obligations
The general position is that the tenant will have a full repairing obligation. Therefore to mitigate that we either provide for:
An exclusion in the lease for the tenant’s responsibility to repair or a full package of warranties from the building contractor and the professional team by which they undertake that responsibility to the tenant.
The other prime concern is to exclude, from the service charge provisions, any cost that the landlord itself may incur in rectifying any decision defect in other parts of the building.
What are the commercial tenant’s key considerations in the management of a property?
It is very important for the tenant to ensure that it meets all its obligations under the lease at the appropriate time. From this point of view it is very helpful for the tenant to have a diary so that it receives a prompt at the appropriate times. The main ones to consider are:
1. The payment dates for the rent2. The payment dates for the service charge3. The payment dates for insurance4. Dates for the decoration of the property 5. Rent review dates6. Any other property specific dates
So whether you are acquiring, disposing of, developing, managing or funding commercial property, we can help. Call our experienced commercial property solicitors for expert, impartial and professional advice on 01895 207285, or email us at CRE@ibblaw.co.uk. Alternatively please visit https://www.ibblaw.co.uk/service/commercial-real-estate
For further information please see the respective pages below:
Commercial Property Development
Commercial Property Investment and Management
Commercial and Business Leases
Resources:
Commercial Land Development and Purchase: Advice for Developers
Heads of Terms in Commercial Real Estate Transactions
Commercial Real Estate Team, IBB SolicitorsCapital Court,30 Windsor Street, Uxbridge, Middlesex. UB8 1AB
