Due Diligence – A Tenant’s Perspective

When assisting tenants in the negotiation of a new lease for commercial or retail premises we strongly urge tenants to arrange a physical inspection of the premises by a qualified inspector before entering into the Lease. 

The inspection should cover the building structure including power and plumbing systems, air conditioning and other installations.  The resolution of problems identified in the inspection report can then be negotiated with the landlord and form part of the written terms of the Lease. 

In some instances we have seen tenants not follow our advice, only to find that after the Lease is signed the tenant is deemed to have accepted the premises in their current condition, including problems (i.e. they are deemed to have accepted the premises “as is”).  This can be a costly issue for tenants as in most instances Leases require tenants to bear the costs of maintenance and repair of the premises including such problems. We can assist tenants with the negotiation of Letters of Offer, Head of Agreement, Agreements for Lease and Lease documents.