Commercial Leases tend to be either 4 years and 9 months or 10/20 years. In general once a business tenant has been in possession for more than 5 years they acquire a business equity which means they are entitled to a renewal at open market rent.
It is possible for a tenant to renounce this right to a business equity which most Landlords will now request. The repair clause in a business lease is very important. With leases of less than 5 years the landlord is usually responsible for repairs except for internal non-structural repairs which would fall to the tenant. In leases longer than five years the tenant is often responsible for all repairs including structural repairs and roof repairs hence it is important to have a survey carried out. It is also prudent for a tenant taking on any commercial lease to have a condition survey done which in simple terms means a pictorial record of the state of the premises before the tenant took it on. Tenants are obliged to register the terms of a new lease with the Property Services Regulatory Authority (www.psr.ie)
