CASE STUDY: INDUSTRIAL WAREHOUSE, NOTTINGHAM

Introduction and Client Background

We were approached by a Tenant enquiring about our services for a Planned Preventative Maintenance survey (PPM) of a Industrial Warehouse with integrated office accommodation in Nottingham. The client was in discussions with a Landlord to take on the lease of another party by way of assignment and were inheriting their liabilities.  We spent time discussing the brief and the client requirements, eventually advising them that a Pre Lease Survey was a better fit to meet their survey needs.

Objectives of the Pre-Lease Survey

The objectives of the survey were to assess the Lease and liabilities against the condition of the premises and advise the client of the issues affecting their occupation and in time their exit from the property.  The client was concerned about on going costs to ensure the property was handed back as per the Lease without looking at the matters that could be addressed within the Lease deal which could potentially minimise their future costs.

Survey Methodology and Approach

We were provided with copies of the Lease and Licence agreements and made arrangements to inspect the premises.  The property was a typical steel portal frame property with insitu cast concrete floor and built up wall cladding.  Externally a large hardstanding was provided.  We attended with our Unmanned Aerial Vehicle (aka a Drone!) to enable the condition of the roof to be assessed and ensure a comprehensive survey was undertaken. 

Findings and Insights

The key issue found with the property was with respect to a Licence to Alter, which had been agreed upon by the previous occupier.  The Licence stated that the works would become part of the premises at Lease expiry. However, we found they had only been partially undertaken, and as such, this called into question whether the works had, in fact, been ‘executed as defined by the Licence agreement.  The client was, therefore, at risk of significant reinstatement costs.  Works consisted of a concrete slab overlay, which was defective with cracking due to inconsistent expansion joints with the original slab below.  This itself carried a repairing obligation that would be costly to rectify.  Welfare facilities were also partially completed.  

Outcome and Client Feedback

The outcome of our pre-lease survey altered the course of the tenants’ negotiations and ultimately enabled them to agree on a new lease with a schedule of condition appended, which we subsequently undertook on to ensure that the defects were addressed.

The Value of Pre-Lease Surveys

Interpreting the client’s requirements is key to providing foresight to deliver the best service possible. The pre-lease survey helped guide the client into a property that was strategically important to their operation. It also ensured their lease interests were protected throughout the term, which will help mitigate their obligations at lease expiry.

Conclusion

At INform Surveying, we understand that leasing property comes with both opportunities and risks. Our Pre-Lease Surveys provide both landlords and tenants with the detailed insights they need to make informed decisions, ensuring transparency and preventing disputes later. Whether leasing a commercial space, industrial unit, or residential property, our expert surveys ensure full visibility of repair obligations, supporting smoother lease negotiations and minimising disputes.

Ready to safeguard your next lease agreement? Contact Inform Surveying today to schedule a Pre-Lease Survey and enter your lease with precision and foresight.