Wednesday, July 18, 2012

Tenant Fitout Checklist in Commercial Property Today

commercial property foyer and entrance way
Every fit out is different and special.

When you lease a property or premises within a property to a commercial or retail tenant, one of the things that will soon lift its head, is the discussion regards the fit out and what it needs to be for ongoing occupancy.

Here are some fitout tips from our recent bulletin for commercial and retail property managers.

Tenant Control

Controlling the tenant in the fit out process is really important as they are likely to do things that the landlord would not want or the building cannot take.

So let’s go back to some basic rules here:

  1. The tenant should submit fit out drawings and specifications to the landlord of the property so they can be reviewed for potential approval.  Depending on the complexity of the building or the tenancy those plans may need to be submitted to the landlords building engineer or consultant.  Those consultants would be looking for anything that threatens the integrity of the property in any way.
  2. The intended fit out should comply with the permitted use as detailed in the lease document.  The permitted use in the lease document should comply with the zoning and planning regulations that apply to the building and the location.
  3. The lease document should have a make good clause that protects the landlord at the end of the lease from any costs associated with the removal of the fit out.  Normally those costs will be the responsibility of the tenant.
  4. The landlord should review the plans and drawings and then set the time frames and constraints for the works to be done.  In this way the landlord can keep the tenant away from other tenants in the property and potentially disrupting many other people.
  5. As work proceeds the tenant’s contractors should work to some guidelines of time and access.  They can access the property through areas that would not disrupt others visiting the property.
  6. Visual barriers should be placed to prevent any other people seeing the disruptions and construction work going on inside the premises.
  7. When the works have been done the tenant and the landlord should inspect the premises together to ensure that the works comply with the approved plans and drawings.
  8. The contractor for the tenant should not be allowed on site unless they provide necessary insurance cover to the landlord for the works that they are to do on the property.

Property Manager System

A good tenant fitout is a product of the controlled interaction between the tenant and the landlord for the property.  The property manager is the facilitator of the landlord’s guidelines and approval processes.

If you want some more tips for commercial or retail property leasing and fitout controls you can get them right here.