A New Year Resolution   -  seek help on property leases

There was not too much Christmas cheer for shops over the festive season as Music Zone and Card Warehouse have gone into Administration, Stationery Box and Adams Kids have both asked to re-negotiate their rent payments. Contrast this to the good fortune of the big 4 food retailers and specialist shops which benefit from high demand and greater profit margin.

A survey carried out last month by Investic Private Bank showed that only 27% of the 170 property investment firms interviewed forecasted any rental growth from shops. By contrast 58% expected growth from offices.

We at RDN Chartered Surveyors believe this is a symptom of the underlying trend for shorter leases mentioned in our last letter  Log on to  http://www.rdn.co.uk/newsroom.htm and read “ Odds on for a better shop deal”
 
What this means for you as business owners.

Before you take on any premises, not just retail, do your homework and then plan, after that check and plan again! An asking rent is just that – not market value.

Show your plans to your future landlord. Given the current market in shops at least, they are far more likely to be impressed, but this also goes for offices and industrial. The last thing they want is you to fail as they then have empty premises and the uncertainty and cost of re-marketing.

A lease is a contract this means only sign it when you are 110% certain that you can comply with its terms, if you cannot the consequences can be costly.

Do not under any circumstances agree to a full repairing and decorating responsibility without agreed photographs to show the condition at the start. If you do not have such a schedule you will be responsible for problems caused by the previous occupier.

You would not pay a new price for an old car so why with premises which are much more expensive!

There are other clauses in a lease which are just as likely to trap the unwary.

Help is at hand from Valuation Surveyors whether finding the right premises, negotiating the rent and lease, renewing lease terms or simply with a rent review. We think we know the tips and traps after 20 years experience.

Why not make a New Year Resolution?

• Give us a ring at the number below and
• Spread the word and pass this letter on to someone who has a need.

Thank you

Wishing you all a very happy …..  and yes a prosperous 2007

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Log on for more information and advice:                  www.rdn.co.uk     

This is part of a regular series of topical articles provided exclusively by RDN Chartered Surveyors. If you would like further information or add your comments please reply to this e mail or contact Roger Nelson on 0800 902 0466