Office Leasing Guide - Plymouth
Maritime city Plymouth occupies a prime position on Devon’s south coast. Its major port has made it a popular base for businesses since the days of the Roman Empire, and it remains a bustling hub for trade.
Looking for help understanding your commercial lease agreement? Renting commercial property is a big commitment – and the wording in contracts often doesn’t make things any easier.
Before you sign on the dotted line, it’s important to understand your lease terms, your rights as a tenant, and your landlord’s obligations in detail. A commercial lease is a legally binding contract and offers less government protection than a residential lease, so you’ll want to have a clear picture of what you can and cannot do.
To help you, we’ve put together a guide explaining some of the standard commercial property lease terms. Whether it’s your first time renting commercial property, or you already have some experience, this should give you the clarity you need to move forward.
A commercial lease gives you, the tenant or lessee, the right to use a piece of property for business or commercial activity, for a set period of time. Typically, your lease agreement will include details on the:
Importantly, it will also outline who’s responsible for making any leasehold improvements and covering the insurance.
As you work through these various elements, here are some of the common terms you’re likely to see.
This section outlines the length of your commercial lease agreement and can include:
For commercial property, you’ll usually pay your rent in advance every quarter. However, commercial leases are more negotiable than residential ones so there may be some flexibility.
As with residential leases, you’ll need to pay a security deposit. It’s usually equal to one month’s rent but can be up to three months’ depending on the property and business type. If during the tenancy, you damage the property or fail to pay rent, the landlord will use this deposit to recover the money. At the end of the lease, you’ll receive the deposit back less any deductions for repairs and restoration.
If your commercial lease permits it, sub-letting lets you rent out all or part of the premises to a third party for the remainder of your rental term. The third party then takes on all the necessary responsibilities, though as the original tenant you’re still liable for the monthly rent and condition of the property. Be warned, it is a complicated process, and you’ll need to draft a commercial sublease agreement everyone agrees to. The sublease agreement often follows the same terms as the head lease, though not always.
Hopefully, you’ll be able to see your fixed end date or automatic renewal lease through to the end. However, if for any reason you need to end your commercial lease early, there are a few options. Subletting and assigning the lease are two. If either isn’t possible, you’ll need to have a break clause.
If you’ve always wanted to work near the coast, Bournemouth and Poole are two great options for running a business in. Once the playground of fisherman, today the two areas are seeing prominent business growth and innovation. With a young and skilled population and a diverse mix of sectors, there are lots of exciting opportunities here.