It's not all about the headline rent
25 September 2017 By Phil Graves
I think it is fair to state that most people have negotiated (or haggled) a deal at some stage in their lives and some are more comfortable than others in doing so. It is probable that most business leaders feel as though they are better placed than most to undertake such a task as they make clean cut decisions daily. However, when it comes to a leasehold property deal, take care.
Virtually all Companies take on business premises and due to affordability, the majority are leasehold premises. It is accepted that you require legal advice, but a growing number of Companies, even down to small SME’s, are now realising appointing a Commercial Property Advisor is a wise move and a decision that can save you thousands.
You begin your private search by trawling through the websites and local property press for availability – so good so far. You may even manage to recognise some premises that suit your needs and make an appointment to inspect – no hassle. If you do like the property that you inspect, you may think that simply negotiating the rent level is the key aspect of the deal – think again!
So many commercial occupiers come unstuck when taking on business premises. Your solicitor will look at the deal that you have struck with the letting agent (who incidentally is acting for the landlord and is a skilled negotiator in his line of business and will of course be biased toward his client), but is not the best person to fully review and further renegotiate your deal to suit you. The agreement has been made and the landlord and his agent will not take kindly to any early change.
IF you had appointed a Commercial Property Advisor in the first place, your position could be totally different. First of all, the agent will have access to a greater volume of available properties, some of which are not being openly offered on the market. They will also have market knowledge of existing leases that maybe shortly coming to an end and therefore be aware of tenants moving out imminently.
Once your search takes place, your agent can vet what is sent and shortlist suitable premises for you to inspect. All of this can at this stage be pretty time consuming at the same time as you are juggling with your various business interests.
Once you have found a suitable property, it is then the agent really comes into his own. Not only negotiating what is considered the market rent, using all of his market knowledge and awareness, but deciding what is best for the tenant in terms of length of lease, any tenant only break clauses, the frequency of any rent reviews, the ability to sublet or underlet, service charges, repairing clauses, tenant covenants, do you have to personally guarantee the lease, can you assign and much more. If these points can be brought to the table from day one, then both the landlord and his agent can take you seriously and when solicitors are instructed, the transaction can proceed far more quickly as each aspect of the lease document has been adequately covered through negotiation.
Remember, Commercial Property Advisors are professional property negotiators and undertake such work daily with years of experience in their respective markets.
Graves Jenkins have successfully negotiated numerous commercial transactions for a variety of commercial property occupiers over many years on office, retail, industrial and other sectors in the commercial property field. We boast an admirable client list and can supply referencing if required.
Talk to us now if you are considering acquiring or relocating. You will find our professional fees affordable and well and truly justified when you consider the financial exposure of your tenancy position.
Contact Phil Graves - 01273 701070 or [email protected]