Commercial Lease Questions.....

[Rayandstew]

Hi guys - hope all is well.
Just have a few questions regarding commercial lease we are looking into taking over.

1) Is it normal for tenant to pay for owners (landlords) solicitors fees to draw up new agreement?
2)Termination rights for redevelopment purposes - does he have to find us alternative location to work from - nothing mentioned about alternative locations on the lease?

Appreciate anyones feedback

[Rosco]

1) depends on lease agreement. Most landlords aren't too worried about this, if they get a good long term tenant. I've send both a lot, so both are quite common

2) depends on lease agreement. But generally no, the termination clause just normally says the landlord can give X months notice to the tenant, and the tenant must move out by XXXXX, if the building is to be redeveloped/demolished.

You would normally get a cheaper rent if the building is likely to be developed in the future. You might be able to add a date, that it can't be done before say 1 year?

Be very careful how much you spend on fitout etc, as if you have to move out quickly that is a waste!

Ross

[Rosco]

Make sure you get legal advice before you sign, as a lawyer is your best support and help on these issues.

Ross

[Davo36]

Hi guys - hope all is well.
Just have a few questions regarding commercial lease we are looking into taking over.

1) Is it normal for tenant to pay for owners (landlords) solicitors fees to draw up new agreement?
2)Termination rights for redevelopment purposes - does he have to find us alternative location to work from - nothing mentioned about alternative locations on the lease?

Appreciate anyone's feedback

1) Yes, but like all things, it's negotiable, sometimes the parties pay half each.
2) I wouldn't advise you sign a lease with that clause in. And no, they don't.