Who’s on your side? or What does ‘represented’ mean in commercial property?
When you buy a house, it’s usual that the vendor is represented by an estate agent, while the purchaser negotiates on their own behalf.
There are so many more considerations to taking on a commercial property that it’s normal for each side to be represented by their own commercial property expert, known as an agent or a surveyor.
As we’ve noted before, negotiating property isn’t the same as other negotiations you might do in your business life and there’s nothing like an unrepresented business owner to make the agent advising the landlord rub his hands with glee.
So who is on your side?
The team acting on your behalf, i.e. that of the prospective occupier is typically as follows:
Commercial Surveyor
Your agent is a commercial surveyor who will identify suitable properties and negotiate terms, which includes balancing your location requirements with your budget and the prevailing market, identifying suitable properties, which you will visit together to draw up a shortlist and then negotiate all aspects of the lease. The negotiations will include the price, but also much else besides.
When choosing your agent, you should be aware that if they act for both landlords and tenants, the vast majority of their firm’s income will come from landlords and there may be a conflict of interest within their office. You may therefore choose a firm that acts for both landlords and occupiers or you may prefer to work with a specialist in acting for occupiers, like Warwick Bookman & Associates.
I have no hesitation in recommending Warwick’s services. He is a specialist in the Clerkenwell area and negotiated a great deal for us on the Farringdon Road.
Mark Baldwin, Managing Director at K+N International
I also like both his dilaps expert, useful for when you are exiting your own showroom, and his property lawyer.London EC1
Commercial Property Lawyer
Your legal expert needs to understand the intricacies of commercial property transactions. Just as you wouldn’t go to see a hematologist when you needed a gynecologist, not all lawyers are the same.
If you don’t have someone on hand with these skills, we can recommend lawyers to suit; this will typically be someone we have worked with over many years who will be able to guide you through the process and who we will work with to make sure that you fully understand your obligations and that your interests are protected.
As a team we have been able to explain hypothetical / esoteric situations well which have been to the considerable advantage of our mutual client.
Dilapidations Surveyor
When relocating your business premises, the lease that you are breaking or terminating is likely to include a dilapidations clause, whereby you have to restore the office or showroom you are vacating to its original condition or make a payment to the landlord, which can be substantial.
We work closely with a dilapidations surveyor, who will use their skill and experience to minimise this payment for you.
Fit-Out Contractor
If your new premises are going to need any work doing before you move in, then having a fit-out contractor already on your team, knowing what kind of space you are hoping to occupy, will help enormously.
Having outline fit-out costs available promptly may help with choosing between options and with negotiation. Once you are ready to take over the premises, getting the fit-out rolling at once will avoid eating into your rent-free period, which could cost you tens of thousands of pounds per month.
We work with carefully selected contractors and are happy to recommend one or two who will be suitable for your scheme.
We strongly recommend putting your team together at the beginning of your relocation project in order to avoid delays later on in the process.
It pays to take professional advice. Contact wbookman@warwickbookman.com for further information and a no-obligation quotation.