The renewal of a commercial lease can be a worrying time for any business. On the one hand the landlord may not be obliged to renew the lease, and on the other it is also open for a commercial tenant to simply walk away from the premises at the end of the existing lease.
If you are a tenant busy running a business it can be all too easy to rush into renewing your commercial lease thinking that it might be easier than having to move or cause disruption to your business.
Actually, a lease renewal is a good time to step back and reflect on your business. Even if you do choose to renew your lease, it’s not an inevitable conclusion that you have to just accept the terms of the new lease as they are presented to you and renew straightaway. In fact, this can be the ideal opportunity to
– review your lease against your business plans, needs, priorities and expectations
– negotiate the new terms of the lease before you agree to any changes
What should a tenant consider before renewing?
If you are a tenant, there are a number of areas that you should think about before you renew your commercial lease including:
– taking the opportunity to analyse your business’ overall performance in the premises and looking at whether they remain suitable for your future business plans
– reviewing the rent and, where necessary, taking professional advice about whether it is appropriate based on the current market
– considering the condition of the property and whether, for example, any work is required
– understanding the legal status and any protection offered by the new lease, including considering any rights you may have under your existing lease which will be lost on signing a new lease
Only once you have properly considered your position are you best placed to enter into negotiations to work towards securing lease terms which are suitable for your current business, whilst taking your future business plans into account.
Whether you are a landlord or a tenant, our experienced Bristol solicitors can help you consider your lease renewal and negotiate any required terms. To arrange an initial discussion, please contact solicitor Janine Harris, Head of the Commercial Property Department on 0117 973 39 89 or email firstname.lastname@example.org