Commercial Property For Rent: Fitzrovia, Soho, Covent Garden, Bloomsbury, Marylebone

LDG are commercial property agents with offices, bars, restaurants, clubs, warehouses, shops, showrooms and retail units for sale, rent and lease in Central London.

LDG Commercial offer specialist knowledge and insight on freehold & leasehold commercial property rental, leasing, letting, management and sales in the West End of London.

We can advise on the sourcing, evaluation or diposal of commercial properties in the West End of London

We can also help you to minimise your commercial property overheads offering specialist advice on property insurances, rating liability. repair covenants, service charges, tenants improvements, lease assignments, lease expiry & renewal, fit out costs and other commercial landlord and tenant issues.

Commercial Property Rent Reviews

Rent review provisions in commercial property leases were originally introduced to counter the effect of inflation during the term of the lease. A standard commercial property rent review clause will generally require the rent to be reviewed at fixed intervals, usually five yearly, during the term.

The vast majority of rent review clauses require the assessment of the open market rack rental value, at the review date, in accordance with specified terms.

Some commercial property rent reviews are however geared to the tenant's turnover or profitability, or movement in the Retail Price Index. In the case of calculating the market rent for a demised premises, the form of the review clause will vary from lease to lease.

In general however the clause should make clear:(i) the review period (ii) the procedural steps for having the rent reviewed (iii) whether or not time is of the essence in the service of notices(iv) the basis of valuation, i.e. assumptions and disregards(v) any hypothetical terms and conditions to be adopted(vi) in default of an agreement, the procedure for the appointment and determination by a third party surveyor such as an Independent Expert or Arbitrator(vii) the effect of a late review, i.e. from when the rent is payable and whether interest is payable thereon(viii) whether the rent can be reviewed upwards or downwards

Commercial Property References

When a new tenant enters into a lease, the landlord will normally require the provision of satisfactory references as a condition of the commercial property lease being granted.

In these circumstances, the tenant is usually required to provide references from a bank, an accountant and two trade references, although this may vary depending on each individual case.

Commercial Property Rent Deposits

A rent deposit is principally a sum of money which is held in an account, for an agreed period of time, to act as financial security in case of default by a party to a contract.

The money would usually earn interest at a fixed or variable rate.When new leases are entered into, a commercial property landlord will often require a rent deposit from the in-going tenant.

The terms of such a rent deposit will vary depending on the financial status of the tenant, but can involve the tenant paying up to 6 months rent in advance.

This amount is then held by the landlord in an interest bearing account for the duration of the commercial property lease, or until the financial integrity of the tenant becomes established.

Alternatively, it might be held until such time as the commercial property lease is assigned and a new deposit is obtained from the subsequent lease assignee.