After the past few years of uncertainty, businesses may be looking to move forward with their plans for a new commercial premises in the New Year. Whether you’re looking to lease or buy a commercial property, it is important to understand the condition of the property before any agreement is signed so you can be sure of any potential cost liability.
Here we look at some of the considerations for taking on a new commercial property.
If you intend to purchase commercial property, having a Pre-Purchase Survey is essential to identify any defects and the potential liability for addressing these. Pre-Purchase Survey reports cover all external and internal elements of the property as well as services, outbuildings and grounds. They also advise upon the condition of the building, lifecycle costs, advice on refurbishment or improvements and repairing obligations. In some cases, the outcome of the report can be used as a negotiating tool to help secure a better deal for the building.
Similar to the above is a Pre-Lease Assessment. Leasing a commercial property will often bring a great deal of responsibility on the tenant for upkeep and maintenance of the property. A Pre-Lease Assessment can help to alert tenants to a building’s condition, including any maintenance, repair and potentially dilapidations issues.
Another recommendation when leasing a commercial property is a Schedule of Condition. A Schedule of Condition is a professionally prepared document that includes both detailed written descriptions and extensive photographs to give a clear record of the condition of a building when a tenant takes possession. This can avoid tenants being responsible for hefty dilapidations claims for repairs in relation to damage that was already present when they took possession of the building.
Whether buying or leasing a commercial property, you will need to insure it. As part of any buildings insurance, you will need to provide a reinstatement estimate to your insurers. Due to the recent rise in the cost of building materials, this has become more difficult to reach. A Chartered Surveyor is able to conduct a Reinstatement Cost Assessment that is designed to provide an accurate, up-to-date value of the property for insurance purposes.
Taking on a commercial building in any capacity carries significant risk and seeking professional advice gives business owners an insight into what they are taking on.
For more information on any of our commercial survey reports, please get in touch.
