The rising number of occupiers seeking advice on dilapidations is an indication that the recovery has the potential for further growth, according to a West of England property professional.
Head of Commercial at Bruton Knowles’s Gloucester office, Angus Taylor, said: “Dilapidations are not the first thing that comes to mind as a bellweather for the commercial property market.
“But the fact we are advising so many tenants on this frequently overlooked aspect of their lease is providing useful insight into this rapidly changing sector.”
He believes that the increase in dilapidations activity is due to occupiers who have been in the same accommodation for years suddenly looking to relocate to new premises as the economy improves.
Mr Taylor continues: “Tenants are putting their properties in order and this is a good indicator of the increasing business confidence across the West. Pent up demand is fuelling moves to bigger, more modern or refurbished premises and there is clearly more money around.”
He goes on to say that this rising activity is “crystallising” some aspects of commercial property operations, which may have seemed of secondary importance during the recession.
“We have been called in to advise increasing numbers of firms about the implications of their lease, and more particularly the dilapidations clause.”
He reminds tenants that they must ensure the condition of the property complies with the lease requirements to avoid covering the cost repairs, which could cost thousands of pounds.
“That’s why we recommend a full assessment at least 12 months before the lease comes to an end, to properly access the condition of the building and give tenants time to fix any problems once identified,” Taylor concluded.
