Right now, companies will be deciding whether to renew or take on new leases, sell properties, dispose of office space, increase square footage or move to alternative buildings in order to deal with a number of business issues. These might include releasing capital, improving cash flow, reducing risk or allowing for expansion. The bricks and mortar of an organisation, whether leased or owned, need to be working more efficiently than ever.

For tenants with a lease break coming up, or who are exiting a property at the end of a lease, it is imperative to employ professional expertise to ensure the most cost effective outcome is reached and ensure that any liabilities are limited, reduced or removed. Any building surveyor worth their salt will ask what the company’s priorities are, and if there is a business plan containing short and long term objectives, will review this as part of their property advice to understand the most appropriate way forward. Property expertise can be helpful in guiding a business expansion, or a plan to downsize a firm and release property liabilities. Where specialist work is undertaken, for example in the food industry or pharmaceuticals, an understanding of the unique processes required by the business and the logistics that surround those activities might also dictate an appropriate course of action.

We work constantly with our clients, many who have been using us for more than two decades, to review their property liabilities and adapt their workspaces to reflect evolving activities and economies. In some instances, as happened following Covid with the working from home movement took off, the amount of floorspace required for many organisations has reduced significantly, and what space is used has become more flexible and informal.

Where properties are leased; dilapidations liabilities must always be factored into any property and budget planning at the outset; as these costs can be unexpected and hefty at a time when the company cannot shoulder those costs. For landlords, ensuring that their property is protected from any losses sustained due to letting out their commercial building or a tenant having to exit mid-lease is a prudent investment. Both parties should consider undertaking comprehensive schedules of condition at the beginning of a lease to include detail of structural and material conditions and defects presented alongside photographic evidence. This can be compared with the lease to ensure there is no smallprint which obliges one side to take a heavier responsibility than necessary. Being in possession of an SOC means that in 3, 5 or 10 years, a tenant can plan for any claims they will have to pay for. Likewise, a landlord will be able to substantiate any claims they put forward to tenants to prove any losses from disrepair or adaptations to their property.

Morse Consultants represents the interests of both landlords and tenants, and when appointed to assist with dilapidations will always take a fair approach to achieving a settlement. This means engaging with both parties to understand the circumstances and taking a professional approach in line with RICS guidelines and legislation. Where claims appear spurious or unsubstantiated, we may be able to achieve significant savings for our clients and have on many occasions taken six figure claims and reduced them to a fraction of the original amount. These unexpected costs can make or break an organisation, and can result in a stressful, unproductive situation if not handled correctly.

By combining our legal property expertise with knowledge of construction we can quickly establish the appropriate processes and costs for project work, but having the right documents in place to allow us to do this effectively makes our work more straightforward. That said, there are very few instances where we have to engage lawyers, or go to court, because we invariably find a way of solving the situation and limiting the time and money required by both parties.

Where new properties are needed as part of setting up a business, downsizing or expanding, we can assist with the property search, surveys, lease reviews, space planning, acquisition and negotiation. We can also project manage any fit out works, and of course can take care of the physical relocation if needed. If you find yourself in a situation where you have an unexpected dilapidations claim, or you are needing to adapt or make the most of your current or future property, obtaining our advice will ensure you have considered every option and can plan effectively to help achieve business goals.