There’s nothing worse during the lease negotiation process than tenants agreeing to lease terms that are not beneficial to them and their business. Often this is due to time pressures that could have been foreseen and avoided.
As tenants focus on their ‘post Covid’ occupational strategy, we are seeing an increased trend of last-minute office relocation enquiries.
When we say, ‘Last Minute’, we don’t mean a week before your tenancy is due up for renewal.
In commercial real estate terms, this means as late as 3 MONTHS before the due date.
We’d like to focus on potentially the biggest bottleneck in the process:
LEGAL NEGOTIATIONS & DOCUMENT EXECUTION
The timeline can vary from 4 to 12 weeks.
This is all down to the readiness of our clients:
- Have solicitors been appointed?
- Are all existing legal documents readily available?
- Has a commercial advisor been selected to act on your behalf?
STEP 1: Agreeing key lease points.
Once an Office is selected, key points that are to be included in the lease are negotiated, agreed and documented in principle, aka. Agreeing “Heads of Terms”.
STEP 2: Anti Money Laundering (AML) check and Client Detail verifications.
The law dictates we CANNOT progress any further without undertaking certain anti-money laundering checks (including verification of ID) and other appropriate checks.
At Omega RE, we use a third-party platform called Veriphy, that enables a smooth and efficient process without the need to arrange face to face meetings with the client.
STEP 3: Request initial legal drafts from landlord.
Once AML is complete, landlord’s solicitors are instructed to draft legal papers. i.e., proof of ownership, dilapidations provisions and other legal clauses; using the agreed Heads of Terms as a template.
Also, it’s HIGHLY RECOMMENDED that tenants conduct any specific searches, highlighting potential issues with the property. i.e., Local authority, environmental, water and drainage, chancel repair and highways. (This is not a legal requirement, however a standard practice during the process)
STEP 4: Finalise legal due diligence and documentation with client’s legal advisors.
This is a crucial part and due to the detailed negotiation involved can take up to 3 weeks to reach an acceptable format. We work alongside you and your legal team to review all documents, including reports from searches ensuring all decisions are well informed
STEP 5: Lease Report & Completion
Usually, the tenant’s solicitor will produce a report of terms and associated documents for a final review. Based on the assumption that there are no surprises in the report, it’s circulated across all parties for a signature.
STEP 6: Payment collection & Agreement of Moving-in date
Once required deposit/lease payments have been transferred, the landlord’s agent will hand the keys over to the tenant and agree a moving-in date and any required fit out can start.
As your representative, we work with you to ensure that all parts of the lease negotiation process are as stress free and efficient as possible. We use our professional knowledge and specialist experience to advise you on the best possible lease terms for you and your business.
Therefore, we recommend starting to think about your relocation requirements about 12 months before you’re planning to move.
We are here to lead you every step of the way. For more information regarding Managing Your Relocation, CLICK HERE and read our comprehensive checklist.
DO GET IN TOUCH WITH US:
T: 02382 355799
Nella Pang, Director
T: 07738 625 431
Jonathan Trice, Director
T: 07725 900 415