Clients Building & Prospective Tenant's Concerns About Access to Ware House

[bigbuildingaco]

Dear Forum Members,

I am currently facing a situation regarding a Client's commercial property with dual entrances, and I would greatly appreciate some points of view.

The property in question is a versatile space totalling approximately 7000 sqft, consisting of a modern Office/Sales Unit (2500 sqft) to the front and a Warehouse/Showroom space (4500 sqft) to the rear. The challenge lies in the fact that there has been significant interest in leasing the Office/Sales Unit alone, particularly from the high street entrance, as well as 1 Genuine inquiry regarding the Warehouse separately from its rear entrance.

Just to note there has been no great enquiry for the Entire Building.

While the Office/Sales Unit lease presents no significant issues, the prospective tenant for the Warehouse has expressed concerns about gated access across a council car park that leads to the rear of the Warehouse. The gate is open six days a week for 12 trading hours, and there is perceived ambiguity regarding access and keys outside of these hours. Other property owners adjoining the council car park do not face similar issues after hours.

Just to note, they Only enquired about the Warehouse.

I suspect that the prospective tenant may be leveraging this concern during negotiations. To address this, I plan to reassure them that the client is willing to forfeit the lease with no issues if problems arise with the council. Additionally, a short lease period will be offered to begin with to allow the tenant to familiarize themselves with the property. While a reasonable rental price can be agreed upon.

Perhaps even suggesting that half 50% of the warehouse for £400 Per week or 100% for £600 Per week see can there be a price agreed somewhere.


The client, who owns the property outright with no mortgage, is not willing to be manipulated but is open to reasonable negotiations. I am seeking advice from the forum on how to approach and resolve this matter effectively. Any insights or suggestions would be greatly appreciated.

Finally, the prospective Warehouse Tenant is a Viable Manufacturer & They are exploring opportunities to add an extra arm to their business & wholesale various forms of stock like Packaging for example & sell for for less margin but create Good cash flow, to both their existing customer base and new customers as part of their business expansion.

Thank you in advance for your time and expertise.

 

[bigbuildingaco]

Even book recommendations on a guide to leasing for retail landlords could help.

 

[WaveJumper]

You seem to be making a real meal of this, if I am negotiating for the warehouse I want a lease that grants me 24 hour, 7 day a week (secure) guaranteed access to my warehouse if the lease cant offer me this no amount of “offers” from the owner would tempt me to sign

 

[fisicx]

@bigbuildingaco - I’m a bit confused. Are you suggesting the council restricts access to the car park outside normal business hours? If that is the case I doubt anyone will sign a lease.

Having a key to the gate is pointless. Drivers arriving at 2am won’t be able to get in unless you give them the key. And that’s not practical.

 

[Newchodge]

Have you spoken to the council about their attitude to the problem?

 

[bigbuildingaco]

@WaveJumper The building is listed as One entire Listing, it is the manufacture that is making the demands just for the Warehouse, I have not mentioned anything about the building being split up this is just the Data that has been developing including the high street interest inquires. The other property owners have 24 hour access, 3 of which are business owners.

@fisicx Good point you make & thanks for being fair but objective, the obvious thing is for the Manufacture to take the entire building Just to note (They do not operate 24 hours) but I take your point & yes the car park is restricted.

@Newchodge The council never had a problem with the car park and it being secured it was a local resident at the time of development that advocated for a locked gated, subsequently that resident is no longer living there.

 

[bigbuildingaco]

@fisicx I will also note that the Manufacture clearly stated that they just want the building to hold stock, but I accept that could also mean Delivery Depot also.

 

[fisicx]

@fisicx I will also note that the Manufacture clearly stated that they just want the building to hold stock, but I accept that could also mean Delivery Depot also.

Which means they may need access at any time. A local warehouse arranges deliveries in the evening when it's quiet and there is better access.

The locked gate is going to be a hindrance to any lease. Have you approached the council to see if the car part can be left unlocked. I suspect not as to do so would encourage overnight parking and possible illegal activities.

You also need to consider that they may need access for large vehicles. Is the council car park suitable for this?

 

[bigbuildingaco]

Noted @fisicx The Gate is not a hindrance when the whole building is taken, granted no great inquiry has came for the whole building, but to answer your question the gate is currently closed but not locked & yes the car park can accommodate large vehicles.

I guess the Warehouse inquiry is subject to the councils point of view & this is just me thinking out loud but I suspect there could be a fee for using there access or a planning permission of some sort?

 

[fisicx]

Ask the council. They are the only ones who can answer your questions.

 

[WaveJumper]

What right of way have the local council granted for access across their land (car park) and is it documented if so what does it say