As an occupier, you are fully responsible for your commercial lease, for the full length of the term. Therefore, if you wish to exit the premises before this date, you are responsible for the disposal of the space.
We specialise in the disposal of occupier space which differs significantly from disposing of a landlord space. While a landlord can afford to wait months or often even years before letting a commercial space, for an occupier wishing to move out, it is a diminishing asset.
Therefore the importance of striking the right balance between reducing financial liabilities, achieving the right level of rent and an agreeable time frame, is paramount.
Occupier disposals fall into three categories, disposal by Sub-lease, Assignment and Surrender.
With a sub-lease you will essentially become the incoming tenant’s landlord and will need to manage the quarterly rental payments and deal with any building-related issues, in the first instance.
If you assign your existing lease, an incoming tenant will take over the full liability of the lease, including paying the current rent and taking on the responsibility for dilapidations.
The landlord may agree to take back the space immediately, either for a cash settlement in lieu of loss of rent, or if it is otherwise financially beneficial for them to do so. Alternatively, you can find a new occupier for the space and if the landlord grants a surrender of the lease, they can simultaneously issue a new lease for the new tenant.
We will advise you on the best route out of your current commercial lease and then act as your agent in the disposal of the property.