Stephensons Solicitors LLP Banner Image
Stephensons Trustpilot stars
Based on count 1359
View all reviews

A guide to pre-lets

What is a pre-let?

A pre-let is a contract between a potential tenant and a commercial property developer which allows the tenant to agree to lease a building before the construction has started. Most likely to occur when there is a shortage of commercial property buildings on the market, entering into a pre-let holds both pros and cons for the parties that are involved.

Reasons why tenants enter into a pre-let agreement

Pre-lets are usually favoured when a tenant can no longer find a suitable property in their search area. The advantage of pre-letting an off-the-plan build is that it may allow the occupier to have some influence over the build design, therefore creating a space tailored to their business’ needs. Businesses may also turn to pre-lets as they are typically cheaper to lease than an already existing property. Pre-lets sometimes include agreements for discounted or rent-free periods.

Tenants that tend to benefit from a pre-let are usually the larger, more influential businesses. These types of organisations generally have the ability to commit to a longer leasehold that a pre-let building requires. However if a tenant is already bound into an existing lease, the tenant cannot enter into a pre-let unless there is a break or expiry in the lease.

loading staff

xxx

 

4.5out of 10
4.5 score on Trustpilot Based on count 1359

We're Great

It is our business to deliver legal services that work for our clients, and you can trust our specialists to take care of things on your behalf.

Our Trustpilot reviews

Old eviction notice periods to return

On the 9 September 2021, new regulations were announced to come into force on the 1 October 2021. The result of these regulations coming into force means that from 1 October 2021, there will be a new Form 6A for a Section 21 Notice and a new Form 3 for...

Read more

Twitter commercial

@CommercialLLP

Family solicitors brace for rise in exes battling over their children getting COVID-19 vaccination

With COVID-19 vaccinations set to be offered to 12- to 15-yeard old’s, family solicitors from a leading UK law firm are anticipating a surge in divorced and separated parents disagreeing on vaccinating their children. “This is...

Read more

Commercial property reorder

  • David Baybut
  • Kate Bullen
  • Jonathan Chadwick
  • ​Chris Graves
  • Louise Hebborn
  • Julie Ball
  • Paul Davies
  • Jessica Charnock
  • Gary Jackson