New build lease - Anything I should be asking

[Tommygun]

I'm looking to take out a lease on a new, yet to be built, retail space. Its to shell specification with capped services and shop front.

I have the CAD plans for the build, an estimated completion of ending Q1 2017 (already over running from the initial plan of Q4 2016) and the proposed leased terms including service charges and breaks/rent reviews for what the landlord is wanting.

Is there anything I need to be asking before putting in my offer? I have leased existing space before, that I have been able to view, just don't want to be missing something on this new build. Anything regards to plumbing or electrics? anything to do with general construction?



Also in terms of rent free periods. Previously 3 months rent free has been the norm due to conversion from previous tenants spec to our requirement. But how likely am I to get a long rent free period with a new shell?
In my calculations this is actually going to cost us more than usual as we need to be installing a lot of things to bring the unit up to a trading spec such as:

• Division of space from one big space to retail and store room
• Flooring
• Plastering
• Decoration
• Lighting
• Fire alarm (if a requirement)
• Fire extinguishers
• CCTV/Alarm
• Heating/cooling
• Toilet (there isn't anything on the plans for a WC so I assume its not a requirement they put one in as standard build spec?)

The costs of which will obviously run into the thousands.

Now would I be unreasonable to take to cost of the above and ask for the equivalent value in months rent free? i.e. 6 months rent free?

Do you think I would get any sort of clause/penalty in the agreement for in the completion is pushed back on the build?

Thanks in advance

 

[marklew]

FYI 'penalty clauses' are illegal in UK law.

The easiest way to do this is with liquidated damages, where you need to 'estimate' the cost of it happening and have it set in the contract. To be liquidated damages they need to be a fair estimation of the costs and capped. E.g. 1% of the contract for each week late upto a maximum of 5%.

The other way is to offer a performance clause, e.g. start at a lower rate, but if they deliver on time then this is higher.

 

[Tommygun]

Ok. Its more a question of what guarantees could I reasonably ask for from the landlord that the units will be complete inline with the projected dates.
I'm not fused about a week or so, but when the estate was started this phase was projected to be ready Q3 2016, and that's now slipped to Q1 2017 (good job I hadnt made an offer/plans earlier)
If I made an offer and plans for Q1, I couldn't afford for it to slip to Q2

 

[Tommygun]

This topic is now a bit irrelevant.

Due to being a new LTD they are asking for 9 months as a deposit - over £13k.

With that being close to half my start up budget it make the property a no go.
Shame, it was a good spot.