press release
Browne Jacobson launches ‘clarity guide’ for commercial tenants
19 January 2009
Commercial property law firm Browne Jacobson
has launched a ‘clarity guide’ to help tenants negotiate their way
through the maze of legal issues likely to arise as a result of the
slowdown in the economy.
The guide, which is free to download from the
firm’s website, has been developed by the firm’s property services
team in response to the growing number of commercial tenants locked
in disputes with their landlords.
The guide is a quick reference tool for
tenants by providing practical guidance, case studies and
straightforward explanations on how they can best understand and
manage the array of liability issues they could potentially face
from landlords. The guide also provides useful hints and tips for
tenants negotiating new leases and gets to grips with the complex
area of property taxation.
The launch of the guide follows a recent
report by the Royal Institution of Chartered Surveyors (RICS) which
predicts the value of commercial property in the UK will have more
than halved by the end of the decade. The RICS forecasts that the
market will see a 16% fall in values in 2009 and up to 10% in 2010.
Values have already fallen by 25% since June 2007 according to its
latest ‘Commercial Property Forecast Report’.
Mark Aldrich, property litigation partner at
Browne Jacobson, commented:
“There is no doubt the commercial property
sector is facing tough times. In a healthy economic climate,
landlords will tend to be more flexible, but when finances begin to
suffer they are less accommodating.
“Whilst prospective new tenants may have
considerable bargaining power in driving down lease lengths,
existing tenants are finding it hard to dispose of unwanted
properties as landlords seek every legal argument open to them to
hold tenants to the full term of their contracts. Occupier demand
has fallen significantly in recent months and if the RICS
predictions ring true, an ever increasing number of landlords and
tenants will lock horns as they seek to protect their own
interests.
“Modern commercial
leases are also highly complex. Commercial property law and market
practices are changing all the time to accommodate the needs of
both landlords and tenants so it is more important now than ever
forboth new and existing tenants to be aware of the law in order to
protect their interests and minimise their liabilities.”
A copy of the clarity guide can be downloaded
from the Browne Jacobson website at www.brownejacobson.com/leasehold-liability
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