When it comest to leasing retail premises and retail shops it is very important that you as the leasing agent or property manager, fully understand the leasing legislation and laws that can apply to the process. Documentation in the retail leasing process can be complex and demanding; when in doubt find a good property solicitor to help the lease preparation.
Systems to follow in the shop leasing process should include key issues such as:
Get the shop defined on a survey plan that is accurate and can be attached to the retail lease. A surveyor should be able to help you here. Part of this plan will be the determination of the area to be occupied; if your rental is set on the basis of area in the tenancy, the plan will be critical to the final lease agreement.
Identify the landlords basic works that apply to the leasing of the premises. Beyond the basic works will be the tenants designed fitout.
Determine the fitout rules that should be applied on the tenant during the fitout construction. The tenants contractors are likely to bend the rules unless you control them from the start of works.
Get some building rules together for the tenants information. These rules can be part of the lease completion or negotiation.
All fitout works required by the tenant should be approved by the landlord prior to the plans being submitted to the local building authority for building approvals.
The tenant should not be given access to the premises until they have signed the lease and paid all lease obligations and guarantees in accordance with the agreement to lease.
Any signage for the premises should be approved by the landlord before placed on the property. Importantly the signage will be similar to the placement and size of that for the other tenants.
Get details together for approved colours and layout of all tenant design works and decoration to be allowed by the landlord. Fail to set these rules will normally see the tenancy not setting or reaching the presentation benchmarks required in the property. This has direct impact on property appearance and hence customer impressions; left unresolved this problem will impact tenant trade and rental.
If the tenancy is to be specially used by the tenant and hence requires structural or engineering design comment, the investigations and building plans should be sourced and submitted as early as possible for the works to be considered.
Consider the tenancy mix and customer trading patterns. They will have impact on the final leasing decisions.
Need more coaching tips for Commercial Real Estate?
