How Commercial Property Solicitors Mitigate Risk For Tenants

Determining how commercial property solicitors mitigate risk for tenants goes to show how valuable they are for businesses. By overseeing every step of the process, from early negotiations to exit strategies, they ensure security, fairness and profitability. Continue reading for more details on how commercial property solicitors support their clients.  

What Are Commercial Property Solicitors? 

Commercial property solicitors are integral to acquiring commercial property for your business. Any property purchased to generate revenue is commercial, such as an office building, gym, restaurant, store, etc. The legislation differs from residential property to property used for business purposes.  

Solicitors in this field specialise in commercial property legislation, offering businesses a wealth of expertise. The majority of their transactional duties are concerned with protecting your business interests.  

The competitive nature and stringent legislation applied to commercial real estate means there are many pitfalls and risks throughout the process. A commercial property solicitor will oversee the process from start to finish, to ensure you get the most out of your agreement. Some of these responsibilities include; 

Almost any property can be classified as commercial property if it is used for business purposes. We say almost, as of course (thanks to COVID), homeworking is much more of a thing now than it ever was 5 years ago. Any legal issues that impact commercial properties require the assistance of commercial property solicitors. Here is how commercial property solicitors mitigate risk for tenants. 

How Commercial Property Solicitors Mitigate Risk For Tenants 

Potentially the main priority for commercial property solicitors is to mitigate risk throughout the transaction process. Considering they oversee every facet of commercial property law, there are many ways in which they mitigate risks.  

Negotiating, Drafting & Reviewing Lease Agreements 

Commercial property solicitors will negotiate fair terms for the lease agreement on your behalf, and where possible, achieve favourable terms for your business. Factors that may be negotiated include lease duration, renewal options, rent price, bills, and break clauses. 

They will also ensure the lease agreement is clear and clarify any grey areas that could cause complications or disputes down the line.   

Once the terms are agreed, they will draft the agreement, including custom clauses to protect your interests, such as caps on rent increases, maintenance responsibilities and conditions for eviction.  

Read our blog What Does A Commercial Lease Agreement Need To Include? here. 

Due Diligence 

To ensure the property meets the standard suitable for business activities, commercial property solicitors will conduct thorough due diligence checks. They will try to ascertain the property’s condition via a review of all of the documentation provided and request relevant documentation required by health & safety regulations, and building codes.  

Managing Liability  

In the drafting of a lease agreement, solicitors will help determine who is liable for specific repair and maintenance duties, the landlord or the tenant. The goal is to limit the liability of the tenant generally for repairs and decoration subject to landlord approval.   

Commercial property solicitors will also ensure any relevant insurance is in place, so their client is covered in case damages occur.  

Dispute Resolution 

At any point, disputes may arise between the tenant and the commercial landlord. A commercial property will ensure good communication and clarity between both parties, to help prevent disputes.  

If it comes to a head, and they must intervene, they will offer legal representation for their client. By mediating and handling conflicts proactively, they ensure a fair and swift resolution.  

Legal Compliance  

Legislation is constantly under review. Commercial property solicitors will apply their knowledge and expertise to ensure their clients are up to date with the latest legal standards. 

At this point, it is worth noting that commercial property solicitors help mitigate risk for business tenants throughout the lease, not just the acquisition process. They will regularly conduct risk assessments and provide relevant legal advice, to guarantee regulatory compliance.  

Exit Strategies  

The commercial climate is currently very difficult to gauge. Let’s not forget, that some businesses are still dealing with the ramifications of closing for nearly two years due to the pandemic.  

If it comes down to it, having an exit strategy in place could prevent a significant loss of earnings. It is always good to have a clear way out, just in case you ever need it. Commercial property solicitors will negotiate break clauses in the lease agreement, giving the tenant an opportunity to exit the lease (without significant penalties) should they need to. 

Commercial property solicitors will also advise on opportunities to sublease the property and assignment. This could be an exit solution with little financial impact.  

How Blacks Legal Commercial Property Solicitors Mitigate Risk For Tenants 

We hope this blog has clearly answered how commercial property solicitors mitigate risk for tenants. It goes without saying that as far as business assets are concerned, commercial property solicitors are indispensable.  

To get the best out of your legal team, you must find devoted commercial property solicitors who are invested in your mutual success. You can find solicitors like that at Blacks Legal.  

Our commercial property solicitors apply their rounded knowledge of commercial law to assist clients with buying and selling commercial property, planning permission, property litigation, lease management, and commercial property tenancy agreements. 

We’re happy to provide our expert advice on whatever your query may be. Our blog is full of useful tools for commercial landlords and tenants.  

If you have any further questions or would like to enquire about our services, please contact us.