Simple laws of supply and demand normally dictate the terms of a bargain and contracts for business premises or leases are no exception. No one can help noticing the empty shops and “to let” signs that are increasing in numbers in the Plymouth area.
As the proverb goes, “every cloud has a silver lining” and what is a problem for a landlord represents a real opportunity for prospective tenants.
The perfect scenario from the landlord’s point of view is a tenant who is financially sound, pays the market rent and is fully responsible for all repairs and insurance for premises – the so called “full repairing and insuring” lease. Certainly in more buoyant economic times when supply is tight tenants often have to accept full repairing and insuring leases without concession.
However in Plymouth where there is an oversupply of premises and no queue of takers, prospective tenants can negotiate significant benefits:
Budding entrepreneurs or tenants seeking to renew lease arrangements or relocate have a real opportunity to negotiate beneficial terms, although they will need to approach negotiations with care
Seasoned landlords are not going to simply roll over. Therefore it is vital that expert legal advice is sought at the outset as it is always difficult “to close the stable door after the horse has bolted” i.e. once heads of terms have been issued it is difficult to re-negotiate and so it is always wise for both parties to obtain legal advice before engaging in negotiation.