Industrial Unit Leaseing
Discussion
Just been to visit a unit which is perfect apart from the fact that they want a 6 year lease, (with a get out clause after 3 years!) The agent told me that this is normal, but since i'm just starting out i don't really want to commit myseelf for that long.
Is this a normal lease time?
Is this a normal lease time?
No it's not the norm - you can get anything from 6 months to 10 years in my experience - they are trying it on or of course it's simply their own specific business practice but ask them for a 2 year lease with a get out after 1 year - more than fair for a start up business (I assume your start up - sorry if your not!!
)
Sorry - ignore start up bit - just seen your "just starting out" bit :mustreadwholemessage:
>> Edited by darrent on Tuesday 20th July 19:02
) Sorry - ignore start up bit - just seen your "just starting out" bit :mustreadwholemessage:
>> Edited by darrent on Tuesday 20th July 19:02
darrent said:
No it's not the norm - you can get anything from 6 months to 10 years in my experience - they are trying it on or of course it's simply their own specific business practice but ask them for a 2 year lease with a get out after 1 year - more than fair for a start up business (I assume your start up - sorry if your not!!
Sorry - ignore start up bit - just seen your "just starting out" bit :mustreadwholemessage:
>> Edited by darrent on Tuesday 20th July 19:02
Just what i thought..
Thank you Sir!
Where about's are you looking for this unit?
A 2 year lease with an option to break at the end of the 1st year is not going to be a very attractive deal to the landlord unless he is truly desperate. Having let the unit and paid his solicitor and estate agent, if he has to face the possibility of getting it back in 12 months when he has the costs of redecorating and marketing and letting it again, he might not be too keen.
If he insists on a longer lease, and your heart is set on this particular unit, try for other options like a rent free period or lower rent but keep the break option in at some stage, and don't let him try for a penalty payment if you exercise the break either.
A 2 year lease with an option to break at the end of the 1st year is not going to be a very attractive deal to the landlord unless he is truly desperate. Having let the unit and paid his solicitor and estate agent, if he has to face the possibility of getting it back in 12 months when he has the costs of redecorating and marketing and letting it again, he might not be too keen.
If he insists on a longer lease, and your heart is set on this particular unit, try for other options like a rent free period or lower rent but keep the break option in at some stage, and don't let him try for a penalty payment if you exercise the break either.
Mutt Kennelkof said:
Where about's are you looking for this unit?
A 2 year lease with an option to break at the end of the 1st year is not going to be a very attractive deal to the landlord unless he is truly desperate. Having let the unit and paid his solicitor and estate agent, if he has to face the possibility of getting it back in 12 months when he has the costs of redecorating and marketing and letting it again, he might not be too keen.
If he insists on a longer lease, and your heart is set on this particular unit, try for other options like a rent free period or lower rent but keep the break option in at some stage, and don't let him try for a penalty payment if you exercise the break either.
Surrey, which is the Problem!
I've found a bigger unit round the corner which is double the size but only 5K more a year, problem is the rates are 5.5K a year, where as its only 2.5K on this unit. I'm going to have noise considerations so i need to be away from residential housing which is an added problem.
Forgot to say. It sounds like what you are doing is pretty heavy if you need to be away from residential property. Make sure the landlord is happy with your proposed use, and also check with the planning department of the council as you could require a change of use to take account of heavier activity than is allowed by the current consent.
Mutt Kennelkof said:
Forgot to say. It sounds like what you are doing is pretty heavy if you need to be away from residential property. Make sure the landlord is happy with your proposed use, and also check with the planning department of the council as you could require a change of use to take account of heavier activity than is allowed by the current consent.
Ta, Both pioints have been cleared.. and are ok!
When you say a 6 year lease with a get out clause at 3 years - who has the option to get out at that time?
If it is you, then you could argue that it is effectively a 3 year lease and negotiate a 3 year lease on that basis. Normally leases running longer than 3 years would have a review at say 3 years.
If you are a new business, try to go for a 2 or 3 year lease as not many landlords like periods less than that, for reasons given by others.
I am an industrial landlord and, in today's climate, I try as much as I can to accomodate starter businesses.
Good luck.
If it is you, then you could argue that it is effectively a 3 year lease and negotiate a 3 year lease on that basis. Normally leases running longer than 3 years would have a review at say 3 years.
If you are a new business, try to go for a 2 or 3 year lease as not many landlords like periods less than that, for reasons given by others.
I am an industrial landlord and, in today's climate, I try as much as I can to accomodate starter businesses.
Good luck.
Davel said:
When you say a 6 year lease with a get out clause at 3 years - who has the option to get out at that time?
If it is you, then you could argue that it is effectively a 3 year lease and negotiate a 3 year lease on that basis. Normally leases running longer than 3 years would have a review at say 3 years.
If you are a new business, try to go for a 2 or 3 year lease as not many landlords like periods less than that, for reasons given by others.
I am an industrial landlord and, in today's climate, I try as much as I can to accomodate starter businesses.
Good luck.
Thanks, I think the Landlord might well be like you, but the Agent is a right T
er!
Apart from our warehouses in Scotland, I always deal directly with our tenants rather than through an agent.
Also our office is based on our main site so it works better dealing directly and things are normally resolved far quicker talking directly if you can.
Agents seem always to be distant and since they liaise with both sides, everything takes an eternity to resolve. They often act for so many sites, you sometimes wonder if they have your business as a priority.
I hope that I have a good relationship with our clients and only use agents or solicitors when really necessary.
Also our office is based on our main site so it works better dealing directly and things are normally resolved far quicker talking directly if you can.
Agents seem always to be distant and since they liaise with both sides, everything takes an eternity to resolve. They often act for so many sites, you sometimes wonder if they have your business as a priority.
I hope that I have a good relationship with our clients and only use agents or solicitors when really necessary.
Gassing Station | Business | Top of Page | What's New | My Stuff