Are you an occupier tied into a lease you no longer need? Or a landlord with a tenant looking to surrender their lease? We can give sound advice on the value of the remaining lease and negotiate a lease surrender on your behalf.
Lease surrender: a difficult negotiation
It’s increasingly difficult for occupiers to negotiate a lease surrender with a landlord. With high vacancy rates and low demand, landlords will often be reluctant to entertain a tenant surrendering the lease unless they pay a substantial premium. However, with the right early advice, it is possible.
The key to negotiating a lease surrender is to be properly informed. When negotiating a lease surrender, we will calculate the net present value of all the liabilities of the lease for you, including:
- Running costs
- Service charges
- Business rates
It’s only when you have the full facts that you can make a decision on lease surrender terms.
What’s the next move for Landlords?
If one of your tenants is asking for a lease surrender you need to be aware of the risks in order to make an informed decision. Do you know what demand is like for your property in the market? What activity has there been for this type of commercial property recently?
By liaising with our Agency colleagues and utilising our national property intelligence we can provide the answers to these questions. We will also be able to advise what vacancy rates are both currently and when the lease expires. This allows you to make an informed decision when considering a lease surrender.
Related services for occupiers
If you are considering a move or need to consolidate, we can give you early advice on alternatives in the market. We can also provide business space audits so you know exactly how much space you need and provide market advice on your options. Find out more about our workplace strategy services.