Whilst the state government of New South Wales has legislated the commercial tenancy code of conduct to combat the effects of COVID-19, there has been plenty of confusion throughout this period.
That confusion is felt by both tenants and landlords, with parties are feeling as though they aren’t getting enough support.
Moreover, there are too many grey areas in the code of conduct which are creating frustration among commercial tenants and landlords.
Both sides are experiencing deadlocks in negotiations due to the lack of clarity in the guidelines provided by the government.
Therefore, there is no better time to hire a Sydney commercial tenant advisor, like Niche Tenant Advisory.
We can help you as a landlord, or a tenant, navigate the murky waters of all kinds of commercial lease negotiations.
Here’s how.
Commercial Lease Re-Negotiation
At this time, it may be necessary to re-negotiate the terms of your commercial lease.
Perhaps your business is struggling to the point it won’t be able to maintain its lease in the future. In this situation, you must be able to re-negotiate your commercial lease (if you’re not choosing to surrender it).
This could include reducing the length of your lease or reducing the amount of office space you are actually renting from your landlord.
Alternatively, you may well try to come to an agreement with your landlord on reduced rent, in line with the commercial tenant code of conduct.
Whatever the details, you must hire a professional Sydney commercial tenant advisor to help you handle this.
Commercial Lease Surrender
In these times, commercial lease surrender may end up being the only option.
A number of Sydney businesses will need to downsize, due to a fluctuation in staff numbers and reduction in business.
Unfortunately, deferring payments as part of the commercial code of conduct can easily cripple a business.
Therefore, the best option in that case may well be to surrender your lease and reassess your position. To do that, it’s essential you work with a professional Sydney tenant advisor.
To discuss your Sydney commercial lease, get in touch with Niche Tenant Advisory here.
