7 Must-Ask Questions Before Signing a Commercial Lease
Finding the perfect commercial property for your business is a significant milestone. At Millfield Estates, we’ve guided countless businesses through this journey across our diverse portfolio spanning from Cramlington to London’s West End. As a family-owned business with three generations of experience, we understand that signing a commercial lease represents a major commitment for your organisation and you may want to employ legal representation.
Understanding Your Financial Commitment
Before putting pen to paper, clarity about your financial obligations is paramount. We recommend asking: “What are the complete financial terms of this lease agreement?”
This question might seem straightforward, but the answer often contains nuanced details beyond the headline rent figure. When we discuss leases with potential tenants, we ensure transparency about:
- The base rent and how it’s calculated (per square foot/metre or total space)
- Service charge inclations and what these specifically cover
- Insurance contributions expected from tenants
- Utility responsibilities and typical costs
- Potential rent review periods and mechanisms
- Any additional fees or charges
As landlords with properties across the UK, from Bolton to Mayfair, we’ve witnessed how unexpected costs can impact businesses. During your negotiations, request examples of previous years’ service charges to better forecast your outgoings.
Lease Length and Flexibility Options
Another critical question: “What is the lease duration, and what flexibility exists within the agreement?”
Business needs evolve, sometimes rapidly and unexpectedly. At Millfield Estates, our tenant-focused approach means we understand the importance of appropriate lease terms. Consider asking about:
- Minimum term requirements
- Break clause options and notice periods
- Renewal rights and processes
- Options to expand within the same building
- Subletting permissions and restrictions
Our experience managing office buildings, industrial estates, and retail units has taught us that flexibility can be as valuable as location for growing businesses. We pride ourselves on crafting agreements that support your business journey rather than constraining it.
Responsibility for Repairs and Maintenance
“Who is responsible for different aspects of property maintenance and repairs?”
This question helps clarify the division of responsibilities between landlord and tenant. When speaking with prospective tenants for our properties in Liverpool, Manchester, and beyond, we provide clear information about:
- The specific repairing obligations (full repairing, internal only, etc.)
- Maintenance of common areas and how costs are allocated
- Responsibility for building systems (HVAC, electrical, plumbing)
- Schedule for planned maintenance works
- Process for reporting and addressing urgent repairs
At Millfield Estates, our hands-on management approach means we remain actively involved in maintaining our properties to high standards. This commitment contributes to our strong tenant retention rates and creates environments where businesses can thrive.
Permitted Use and Alterations
“What restrictions exist regarding property use and modifications?”
Understanding what you can and cannot do within your leased space prevents future complications. Key aspects to consider include:
- Permitted business activities within the space
- Approval processes for internal alterations
- Signage rights and restrictions
- Hours of operation limitations (particularly relevant for retail units)
- Constraints on noise, odours, or other potential impacts
Our diverse portfolio across prime locations from St Albans to Nottingham accommodates various business types, but every property has specific parameters. We work collaboratively with tenants to find solutions that respect the property while supporting business requirements.
Service Level Expectations
A question that reveals much about your future relationship: “What level of landlord service can I expect during our tenancy?”
This explores the practical aspects of the landlord-tenant relationship, including:
- Primary contact points for different issues
- Response times for maintenance requests
- After-hours emergency procedures
- Communication methods and frequency
- Support for move-in and operational transitions
Our family-owned business ethos at Millfield Estates emphasises building lasting relationships with tenants. We provide attentive management across all our trade counter developments, retail units, and office buildings, believing that proactive service benefits both parties.
Neighbouring Tenants and Exclusivity
“Who are the neighbouring businesses, and are there any exclusivity agreements in place?”
For many businesses, particularly in retail settings, the tenant mix significantly impacts success. Consider asking about:
- Current occupiers within the development
- Any planned changes to tenant composition
- Exclusivity rights protecting you from direct competitors
- Anchor tenants that drive footfall
- Compatible businesses that might create synergies
With our extensive property portfolio, we’ve observed how the right mix of complementary businesses can create thriving environments. This awareness informs our leasing strategies and helps us build successful business communities.
Exit Strategy and Dilapidations
Finally, though it may seem premature: “What happens when the lease ends or if early termination becomes necessary?”
Understanding the exit process provides valuable peace of mind. Key considerations include:
- Dilapidation expectations and assessment process
- Notice periods for different scenarios
- Potential for lease assignment if circumstances change
- Return of deposit or security mechanisms
- Options for lease renewal or extension
Our straightforward approach to property management includes clarity about lease conclusions. This transparency has helped us maintain excellent relationships with tenants, even when their space requirements change.
Making Your Decision
Armed with answers to these seven questions, you’ll be better positioned to make an informed decision about your commercial property lease. The right space supports your business operations while the right landlord relationship enhances your overall experience.
At Millfield Estates, we bring three generations of property expertise to every tenant relationship. Our hands-on management style and commitment to tenant satisfaction have created successful business environments throughout our portfolio.
Whether you’re considering one of our industrial estates in Bolton, prime retail units in Liverpool, or prestigious office buildings in London’s Mayfair, we welcome your questions and look forward to potentially welcoming you as a tenant.
