One of the important aspects of a commercial lease at the end of the term is to how both parties namely landlord and tenant wish to deal with the reinstatement provisions in respect of tenant fitout works.
It is important to draft the reinstatement clause carefully and accurately to reflect both landlord and tenant needs to prevent any dispute later on.
Issues for the landlord
At the end of the term the landlord may want to keep certain fitout works as they could benefit any future occupier of the property should the property be re-let. In such a scenario the landlord may want to insert wording to reflect that certain elements of the tenant’s fitout works are retained rather than reinstated.
Issues for the tenant
If a tenant is required to leave some of the tenant fitout works at the property, then this could save cost to the tenant. However, the tenant should be mindful that if certain fitout works are to remain then partial fitout works removal could be more expensive. Also, the tenant may want to take with them certain items that are very important for their business. Such examples could include racking within any property which could be expensive but very important for the tenant’s use in their business.
Conclusion
It may be best to include some element of flexibility within any reinstatement provisions within the lease to enable both parties to be satisfied at the end of the term and to avoid any dispute at a later date and much will depend on the landlord and tenant’s requirements in respect of the commercial letting.
Careful drafting of the lease is important to protect the interests of both parties and Guest Walker can assist to navigate commercial clients through these issues.
Qualified for 20 years, he works closely with the specialist residential property/life planning team at Guest Walker to provide a holistic and personal commercial property advice and services to our clients working closely with them as their legal partners.
You can contact Tom directly on: tom.milner@guestwalker.co.uk
- Tenant Fitout Works - May 28, 2026
