Posted on 15 May 2014

Leeds welcomes back the Commercial Property market

Posted in Advice

Read time: 2 minutes

Predictions are that the UK economy will exceed its pre–recession peak this summer. Business activity has been growing in every region of Britain over the last few quarters and it is clear that Leeds is seeing the benefit.

2013 was a good year for the local property market with the opening of Leeds Trinity, the First Direct Arena and the announcement of the Victoria Gate and Leeds City Station developments. Vacancy rates are now coming down with rents for the first time since 2007 eclipsing rental rates before the crash.

With growth in most sectors we’re due to see vacancy rates continue to fall modestly for office, retail and industrial properties according to a survey carried out by the Urban Land Institute and tax and advising firm Ernst and Young.

Walking through the city today you should notice the increase in the number of cranes on the skyline and fewer empty retail and office units, a sure sign that the market is steadily improving.

If you are thinking of investing in commercial property, moving business premises or negotiating new lease terms now may be the time!

Top Tips

Do not pay too much rent – if in doubt consult a local surveyor!
Negotiate a rent free period
Are careful with rent review clauses
Have opportunities to terminate the lease early without onerous conditions attached!
Do not over commit on the length of the lease
Take specialist advice on limiting your repairing obligation. Liabilities can severely damage your cash flow!
Negotiate a cap on any service charge
Can assign the lease and sublet the property
Check the Landlord is responsible for the buildings insurance, check the policy is adequate and paid to date and that you can terminate the lease in good time if the property is not usable following damage or destruction
Check planning permission and any other consents or licences are in place
Check whether VAT is payable?