Key Priorities For Commercial Property Leases

Commercial property leases are hugely important contracts. This is because they set out the ground rules between both the landlords and the tenants. It is essential that both parties are clear on their priorities from the outset. This is why you need to speak to a commercial property lawyer to ensure that you and your property are protected within the commercial property lease. They will ensure that the key priorities for commercial leases are met for both the tenant and the landlord.

There is a principle known as the caveat emptor, more commonly known as ‘buyer beware’. It applies more vigorously in consumer contracts. Generally speaking, courts will uphold the sanctity of freely negotiated terms. This approach will reflect the legal presumption that the commercial entities possess equal bargaining power and access to professional legal advice. That said, in practice, market conditions can sway negotiating positions quite significantly.

The key priorities for landlords in commercial property leases will typically aim to preserve and enhance property value. This will be done though clear use restrictions as well as tenant covenants. The landlord will also aim to ensure that rental income keep pace with, or exceeds, market values. This will be ensured through effective rent review mechanisms. The landlord will also look to minimise operational liabilities. This will be possible by shifting repair and maintenance obligations to the tenant.

Meanwhile, the tenants will have different key priorities for their commercial property lease. For example, they will want to have cost predictability. This will be made possible through controlled rent increases and transparent service charge provisions. Commercial property tenants will also require operational flexibility. This will be via reasonable assignment and subletting rights. A tenant will also aim for clear and unambiguous maintenance responsibilities. This will help to avoid unexpected costs and disputes.

If you need help with the key priorities for your commercial property lease, call our commercial property solicitors in Peterborough. We will take the time to ensure that you and your property are protected.