Property rents are usually the highest costs for a business, after staff salaries, and in the current economic climate, many businesses are considering reorganization and downsizing their premises in an attempt to reduce their outgoings.
In fact, there may be other advantages to the move the new premises may be in a better location, they may be more modern, offer better facilities and may demand smaller service charges (although this is influenced by different and independent factors).
However, businesses must consider the existing lease. The two options are to surrender or market the premises.
It is unlikely that the landlord will accept a surrender of the lease and take it back, after all the landlord will then have to market the property and find another tenant at his own expense.
The preferable option for businesses will be to find a prospective tenant. Consent from the landlord will be required before the lease can be assigned and the landlord will be eager to ensure that his rental obligations will be met (usually dealt with credit references). The advantage of seeking this option will be that any prospective tenants can visit the premises and see how they are currently occupied and run by the existing tenant, and thus this could look more attractive and aid in finding a suitable tenant.
If you would like any advice in relation a commercial lease, then get in touch with our Commercial Property department and speak to a specialist.