Commercial Tenant Rights and Obligations When Taking on a Lease of Newly Built Property

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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 Alternatively please visit

For further information please see the respective pages below:

Commercial Property Finance

Commercial Property Development

Commercial Property Investment and Management

Commercial and Business Leases


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