Coordinating Commercial Lease Renewals and Major Works for our Landlord Client

Managing a commercial lease renewal is rarely straightforward but when two tenants on different lease structures approach lease end simultaneously, and both require significant property works, the complexity of the new lease terms increases significantly.

This was the scenario facing our team at a 5-unit industrial estate in RG24, owned by our long-standing client Bloomsbury Properties.

The Commercial Lease Renewal Challenge

Two good tenants, Wren Kitchens and Anglian Windows, were nearing the end of their respective leases at the same time. Both had been long-term occupiers, and both required a new roof to remain in occupation and renew the lease. The landlord’s priority was to retain both tenants, therefore avoiding a void period once the lease comes to an end.  They also needed to protect the long-term value of the property.

The Role of our Chartered Surveyors

Our team of property surveyors have a wealth and breadth of experience that enabled us to take a proactive and coordinated approach. Mike Shears and Phil Pearcey worked closely together to manage the lease renewals and deliver a solution that worked for all parties.

Here's how we approached the lease negotiation:

• Explored overcladding feasibility to minimise disruption during the works and to provide a longer-term, cost-effective roofing solution
• Negotiated both lease renewals in parallel, aligning new terms to reflect each tenant's needs while protecting the landlord’s rental income
• Maintained positive relationships with each business tenant to ensure continued occupation and secure the landlord’s long-term investment
• Managed the specification of the roof works, which will enhance the value of the property in the future

The New Lease Outcome

The proactive and coordinated approach taken by our team delivered an outstanding outcome for our client. We successfully retained two high-quality tenants and secured long-term occupation at the commercial premises. By negotiating favourable lease terms that carefully balanced the needs of both tenants with the landlord’s commercial objectives, we significantly reduced the risk of a costly vacancy or prolonged void period. When a lease reaches its end any commercial landlord wants to avoid downtime in rent and therefore agree terms for a new lease as quickly as possible.

In addition to securing ongoing rental income, the project also directly enhanced the capital value of the property. We oversaw the specification and feasibility of the essential roof works, carefully managing the process from start to finish. As part of this, we recommended future-proofing solutions, including the option of overcladding. These improvements enhanced the overall condition of the building, meeting the immediate operational needs of the tenants. At the same time, the works helped protect and strengthen the landlord’s investment value over the long term.

Taking the time to understand both the technical requirements of the property and the strategic priorities of the landlord allowed us to deliver a solution that worked both commercially and operationally. The result is a stronger, more resilient asset with a secure income stream, exactly the outcome landlords aim to achieve when managing commercial lease renewals and major property works.

Supporting Landlords Through Complex Lease Events

Whether you're dealing with renewing a commercial lease, an upcoming break clause on an existing lease, or planning major works, early intervention and clear communication are key to a successful negotiation. We always advise landlords to have a strategy in place well ahead of the start of the lease renewal process.

If you’re a landlord facing a similar challenge with your current commercial lease agreement, get in touch to see how our team can support you with lease renewal negotiations.