The most critical is that the pre-lease conditions may predetermine a rental start date related to the imminent end of leasing. The result? Minimal rental liabilities and a modern building with a head office suitable for an occupant`s activities. A pre-let agreement is simply an agreement between a landlord and a potential tenant to enter into a lease agreement at some point in the future, often based on certain conditions. A pre-let does not create a direct legal right to exclusive occupation of the premises, unlike a lease agreement, but creates contractual rights and obligations between the parties. Negotiating a lengthy judgment to cancel the lease is likely to cause similar problems on both sides. A lessor who has promised significant expenses will want to ensure that he is insured, even in the event of total destruction of his works, about to be completed. Variations Procedures are negotiated to allow a tenant to request changes to the agreed specifications. Owners must be very careful to ensure that such variations, which can be very extensive, do not affect the other obligations of an owner of the lease. The deadlines and date of a lessor`s obligations generally need to be carefully considered, with a tenant being very clearly obliged to reimburse the lessor for the extra costs of these discrepancies. If the proposed new premises need to be rebuilt (tailored or not) or if the lessor and tenant must carry out work before occupancy in the premises before occupancy can take place, the processes under the pre-lease agreement can be very complex. However, this is not always the case and the existing landlord may have a new tenant to look after him. In these circumstances, delaying the landlord`s work in the new premises could, in the worst case, lead the squat to no longer have premises from which it can operate. In these circumstances, the pre-agreement would require detailed provisions on the distribution of risks, so that in the event of a move to temporary accommodation, the squat will not be subject to an additional cost until the practical completion of the landlord`s work and the completion of its own establishment in the new premises.
Prior agreements play a crucial role in promoting the fluidity of Jersey`s commercial real estate market, as they allow tenants to move existing commercial premises to new or renovated premises, while providing a period during which tenants can opt out of their existing lease agreements, whether in the event of a breach or the award of a lease. For landlords, this means that a future source of income can be guaranteed before spending money on building or equipping premises to make them suitable for a future tenant. Pre-lets are generally preferred when a tenant is no longer able to find suitable real estate in their search area. The advantage of pre-renting an off-the-plan construction is that it can allow the occupant to have some influence on the construction design, thus creating a space adapted to the needs of his business.