CBC
Case study · Retail · Tenant-side

Retail unit, prime high street, Manchester

Schedule of Condition limiting repairing liability for an incoming retailer taking a 5-year letting on a prime Manchester high-street unit.

Property type
Mid-terrace retail unit
Location
Manchester city centre, prime high street
Instruction
Pre-lease Schedule of Condition
Client
Incoming tenant, independent retailer
Lease term
5-year FRI
Deliverable
Lease-ready schedule with shopfront record

Overview

An independent retailer was taking a 5-year FRI lease on a mid-terrace prime high-street unit in Manchester. The unit had been previously fitted out for a national chain and the existing fit-out, shopfront and services were of mixed condition. We were instructed to fix the documented condition before lease execution.

The brief

The brief

The previous tenant had stripped out only partially before vacating; the incoming tenant intended a full refit but did not want to inherit liability for pre-existing defects to the shell, services or shopfront. The landlord's draft lease was on standard FRI terms with a generic repairing covenant, and an open dilapidations risk at lease end.

The tenant's solicitor required a Schedule of Condition appended to the lease and referenced in the repairing covenant.

Our role

What CBC did

An experienced specialist surveyor inspected the entire demise, sales floor, ancillary back-of-house, basement storage, services, shopfront and rear access. The resulting Schedule of Condition was issued floor-by-floor with separate sections for shopfront, internal finishes, services and externals.

  • 01Sales floor, ancillary and basement storage
  • 02Shopfront, including signage zone, glazing and entrance
  • 03Mechanical and electrical installations as observed
  • 04Rear service yard and goods-in
  • 05Pre-existing structural and decorative defects clearly recorded
The value

Why it mattered

On a 5-year retail FRI lease the dilapidations exposure can routinely match or exceed annual rent. A properly prepared schedule limits the tenant's repairing obligation to the documented baseline, and converts a generic open-ended liability into a known and capped one.

Specialist insight

Where retail dilapidations claims tend to escalate

Shopfronts, signage zones and prominent floor finishes are the three retail elements most commonly the subject of dilapidations dispute. Each is photographically recorded in detail at lease grant, a small effort that consistently pays back at lease end.

, CBC Surveyors

Related service

Schedule of Condition for retail tenants

CBC acts for retail tenants on prime, secondary and shopping centre lettings nationwide. Same-working-day fixed quotes; specialist surveyor sign-off.

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