Renting a Commercial Unit - First Time Letting

[Culchie]

Hi,

I am taking on a 10 year lease (with 5 year break clause) on a Commercial unit.

One thing that is bothering me, is regarding the fixtures and fittings I put in place.

One clause in the lease states that upon the end of the lease period, if the landlord requires, (but not unless they require), I am to remove and fixtures and fittings and leave the unit in the same state as I received it.

My problem is this ... I am spending quite a fair bit of money fitting the unit out with partitions, suspended ceilings, doors etc... (as well as office furniture). I am also paying for electric works to take place (lighting, sockets etc...) So when I walk out of the premises in 5 or 10 years time, I would have incurred all this cost, and someone else (next tenant) can just walk in and benefit from my fit out costs.

Is this a normal clause?

Surely I should have the right to either remove my own fittings... or more practically, negotiate an agreed amount for this work incurred which benefits the landlord and the next tenant.

 

[MichaelBurke]

I can certainly appreciate your concern but the clause is to protect the the landlord in the event the next tenant prospective tenant requires a different fit-out.

 

[Culchie]

I can certainly appreciate your concern but the clause is to protect the the landlord in the event the next tenant prospective tenant requires a different fit-out.

Fair enough, then I should be able to take the fittings with me then? I think that is fair....but the lease states if the landlord requires .... what he says he doesn't 'require' ...(which I'm sure he won't)

And what about the Electricity fit out?

The landlord and all future tenants benefit from my initial fit out costs, they won't be repeated for approx 40/50 years probably.

 

[mo3art]

Normally there would be a "reinstatement clause" which would require the tenant to return the unit to the condition it was previous to the letting.
Why don't you request to put this clause into the lease, which would then mean you can take your fixtures and fittings with you?

Alternatively you could request that there be a discount to the final period of rent or lump sum payment to the tenant should the landlord require you to leave the unit as is.