Commercial Property

gggareth

All,

Sorry if this is not the correct forum :

We are currently renting a commercial property & there is an option to break at 15 years.We are now in year 14 & would like to review our options.

1 Move completely to a smaller facility reducing cost.
2.Stay where we are but try to get the Rent reduced to an acceptable level
3. Do nothing and get hammered for an increase in 2 years time..

Do commercial landlords have the same concerns with regard to void periods ?.What should i expect to be a reasonable reduction?

28000 sqf total

26000 warehouse
2000 offices, etc

GGg

ciano125

First of all, you need to take proper advice, perhaps from a Chartered Surveyor who specialises in Landlord and Tenant Law. Break Clauses can be notoriously difficult and you can void them easily (there is case law where a tenant re-painted with 2 coats of paint and the lease said 3, therefore the break was invalid).

It depends on what the lease says, but you could be in a good position to re-negotiate your lease. It also depends upon what the local market is like, and how much demand there is for properties such as yours.

You can find a surveyor on the RICS website who should be able to help. I'd expect it to cost no more than maybe a couple of grand or so, but that could easily be spent, and more, by getting screwed over by not fully understanding the market, the lease, the law etc etc.