Reduce overheads and secure tenants for the long term via early lease restructuring – JLL
If you are a tenant of a commercial property, you should consider talking to your landlord about an early restructuring of your lease. It could lead to improved terms for you, including financial incentives that would enable you to reinvest into your business, says Jones Lang LaSalle.
If you are the landlord of a commercial property, the early restructuring of your lease agreement could also be to your benefit, JLL says. If you act now to offer incentives to encourage your tenant to take out a longer lease, you avoid the danger of your property being left empty.
JLL, which is currently advising on about 40 early lease restructures in the South West region, says tenants and landlords should consider working together on this issue, for their mutual benefit. Allister Donovan, director in the lease advisory team at JLL’s Bristol office, says tenants typically leave it until the final few months of a lease before they speak to the landlord about re-leasing. “We are urging that even if they still have two or three years left to run on a lease then they should aim to open talks with their landlord about re-structuring,” he says. He notes that many tenants don’t realise that they could receive incentives in return for removing break clauses that may be due during the next few years.
