Legal Issues in an Office Relocation

Posted on 09/02/2014

For the ongoing success and security of your business during an office move, it’s important to understand the legal issues involved in the relocation. There are several areas that require attention from operational and legal perspectives.

The current office exit strategy

There are many good reasons for taking out a new office lease. Possibly your present lease is soon to expire, or you have the opportunity to take advantage of favourable business conditions and relocate. You may also have financially viable options to break your present lease. In any case, it’s important to understand the requirements involved in terminating the lease. Options available include:

  • Contact the landlord and negotiate lease termination
  • Terminate the lease using the break clause in the contract
  • Assign or sub-let the lease to another tenant

You may wish to get in touch with a commercial real estate lawyer and seek advice if you are uncertain about the best option to take.

During the move

Taking on a new lease is a big financial and operational commitment. It’s a legal and binding agreement that confers obligations as well as liabilities for the duration of the lease. Failing to fulfil the requirements of the lease agreement can be costly, resulting in financial and operational losses. For a business just starting out, or if you are uncertain of your exact needs or rights, there are several considerations to bear in mind:

  • Is the lease an appropriate one for your ongoing business needs
  • Are there option clauses to break or extend the lease
  • Are there added expenses, maintenance costs, taxes, insurance, etc.
  • Potential changes to the rent that may affect profitability
  • Renters responsibility for repair of damage to the premises
  • Does the lease reflect the needs of your business and employees

Make certain that you have accurately negotiated the lease. It’s important that you understand the implications of the terms, conditions, liabilities and costs before making the commitment.

After the move

Hopefully, all will go smoothly, and with the assistance of a company such as Office Removals Sydney the actual moving itself will be a well orchestrated affair. Once established at the new location, there will be expectations for increased productivity and employee satisfaction. A harmonious tenant / landlord relationship is the norm, but occasionally there will be ongoing legal issues. Staying on good terms with the owner / landlord will ease concerns if issues do arise, making disagreements easier to resolve. This will allow you to concentrate on the reason you moved in the first place: your business.

A commercial real estate lease can often involve negotiation, drafting, and interpreting on a much more detailed level than a house rental. For newcomers to commercial renting, or for those who want to make certain they have all angles covered, consult a legal real estate representative for appropriate advice and begin the next phase of your business growth with confidence.

By George B (follow me on Google)