In today’s uncertain market commercial tenants must ensure they utilise their lease to make the most of the opportunities and benefits from the inevitable change in work patterns.
In order to do this, tenants need to understand their lease to identify the available opportunities, such as key lease events including rent reviews, break clauses and leases expiries, and be proactive in grasping these.
Here are our five ‘top tips’ for commercial occupiers with lease events over the next 6-12 months:
1. Seek early professional advice – early professional advice will ensure you are aware of the terms and therefore that you comply with the timings and obligations you have under your lease, this is especially the case when dealing with a break option or lease renewal. The earlier you get advice the better!
2. Know your needs – property plays a key role in any business’ operations. Know what you need from your property portfolio and how this aligns with your company's strategic goals.
3. Know your market – commercial property markets are constantly changing and evolving. Being aware of market trends helps you secure best value for your portfolio.
4. Be open to being flexible – with the current market uncertainty, creative solutions between landlords and tenants are often required to deliver best value to a commercial tenant
5. Be proactive – by engaging with your landlords early to proactively seek resolutions to upcoming lease events, tenants give themselves the best opportunity for a successful negotiated outcome.
How Cluttons can help
Through our multi-disciplinary practice, Cluttons are involved throughout the life cycle of a commercial property and are fully up to date with emerging market trends to ensure the best results for our clients. We use this market knowledge to help you identify areas where improved terms can be sought and negotiate on your behalf to deliver greater value from your property portfolio. Our team will work alongside you to devise a strategy to best serve your strategic aims, without this being detrimental to your landlord and tenant relationship, and will secure the best value for your lease whether this be minimising rental uplifts at review, securing concessions in advance of a break or improving your terms on renewal.