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Flooding of commercial properties

Flooding of commercial properties
29th January 2016

Flooding of commercial properties

With recent flooding problems within the UK, it is important for both owners and occupiers of commercial property to truly understand the long term effects.

For the occupier, the consequences will begin with the work space for staff being damaged and no longer a suitable working environment. In addition, electrical equipment and furniture could be damaged, along with the building itself. Some of the long term consequences could be caused from water making its way into the foundation of the building, and freezing in cold weather causing cracks, or the growth in moister in the walls increasing the risk of mould which can cause unhealthy working conditions.

For the landlord, the damage will result in having a space which may not be lettable due to the state of it; a building which needs repairing from the floods, and damages to the interior of the office from the floods. However, a major factor that could potentially go overlooked is making sure the property is returned to good repair, prior to having its insurance renewed. If the landlord doesn’t have the property appropriately looked over before insuring, and the building has suffered from water damage, the insurance could be void.

Fraser Williams, Director at Morgan Pryce said: “We will always try and negotiate a service charge cap for our clients, since in commercial leases, you are responsible under a full repairing lease to ensure that the property you are letting is in the same condition. It’s very important that tenants dn not end up being liable to pay for costs to return a flooded building to original repair.”

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.

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