Commercial Property Tenancy Transaction Risks

Managing the Risks of Commercial Property Tenancy Transactions: A Commercial Solicitors Role

When navigating a commercial property tenancy agreement there are several risks that can crop up that without being properly handled could end up being a stumbling block to any agreement. This is where the importance of a commercial solicitor emerges, as a solicitor can help to navigate through the potential risks. We will delve into key areas where a commercial solicitor’s guidance can prove to be paramount in risk management within a commercial tenancy scenario.

Rent Terms

One of the most fundamental aspects of any commercial property tenancy agreement is the stipulation of rent terms. The financial capabilities or desires of either a tenant or a landlord need to be reflected in the agreed rent, with further complicated issues such as costs for common areas or paying any operating costs need to be negotiated into the price. This is where a commercial solicitor will shield tenants from any unforeseen burdens and help reduce any overwhelming costs for any landlord.

Flexibility within the Lease

Lease terms that strike a balance between stability and flexibility need to be negotiated to allow dynamic business that evolve over time the ability to continue evolving. This includes provisions for lease extensions, renewals and early terminations which need to be reviewed to enable tenants to adapt to changing circumstances and protect landlords from being hung out to dry with empty premises. These complicated negotiated clauses enable any client to realise their wishes without any undue legal complications.

Maintenance and Repairs

One of the main sticking points in any commercial tenancy agreement is the responsibility for maintenance and repairs. A solicitor would carefully scrutinise a lease agreement to delineate clear guidelines on the maintenance and repair obligations of both parties. By proving a comprehensive framework this minimises the risk of conflict in the future and ensures neither party is burdened with all of the maintenance costs.

Conduct related Restrictions

Commercial tenancy agreements often impose restrictions on tenant conduct such as maintaining a harmonious environment in any common areas or proving restrictions on certain hours of operation. A commercial solicitor aids a tenant in understanding and negotiating these restrictions ensuring that they align with the business’s operating requirements whilst they would help outline the position of the landlord. This includes alterations, signage and many other aspects that may impact the tenants’ day-to-day operations.

Conclusions

All commercial tenancy agreements will incorporate parts of what has been discussed above, the risks involved can be addressed by the inclusion of a commercial solicitor who can act as a guardian to navigate the client through the potential pitfalls. This enables the tenant to go into the agreement with full confidence that their operating requirements are being met whilst, landlord can be secure in the knowledge that an agreement is in place that their rights are secured.