Occupiers will seek to surrender their lease or leases when they no longer have a need for their premises. Often a decision to surrender a lease can be brought about by a need to lessen liabilities or to consolidate a number of premises. In an unstable or weak market, particularly one which is suffering from high vacancy rates, Landlords will be averse to accepting a lease surrender unless a substantial premium is offered. In order to formulate a reasoned and well argued proposal to present to the Landlord, the tenant will need to know what the commercial property market is like for their type of property (i.e. demand, vacancy rates).
Our team will provide detailed advice in this respect, together with calculating the liabilities of your lease so an informed decision can be made. From a Landlord’s perspective being confronted with a tenant seeking to surrender a lease will be concerning. However it may also be an excellent opportunity to improve and add value to an asset. Our team will consult with colleagues in the development, investment and leasing teams to provide guidance on the possible asset management opportunities available to you.