Commercial Property

Commercial property refers to property used for business purposes such as retail, office, leisure or industrial units. Our commercial property guides are aimed both at the investor in commercial property and at businesses which purchase or lease commercial property.

A business requiring a premises needs to consider whether renting or purchasing is the better option.

The commercial lease governs the relationship between the landlord and tenant. It sets out the terms and conditions in relation to a range of financial, commercial and practical issues that arise over the course of the lease. The commercial investor will wish to obtain terms favourable to the landlord. The business occupier will seek terms favourable to the tenant.

 

The rent, rent review and duration are basic commercial terms.The tenant's rights to a new lease or an extension of lease can be a significant asset from a tenant's perspective.

 

Repairing and insurance obligations can create significant and unexpected burdens. Conflicts can arise between landlord and tenant in relation to improvement works and changes of use. A lease can be a valuable asset. Landlords may wish to retain their tenant and tenants may wish to sell. There are important rights in relation to the sale and sub-letting the leased premises.

 

Disputes between landlords raise issues in relation to the termination of the lease. Litigation may arise in the event of dispute.

 

Commercial property is subject to compliance obligations under Planning legislation, Building Control legislation and a number of other statutory requirements. The use of commercial premises can create obligations under Health and Safety workplace legislation.

 

The receipt of rental income by Irish based investors gives rise to Irish Income Tax obligations and UK Income Tax obligations. There may also be implications under other taxes in Ireland and other taxes in the UK. Commercial property raises specific taxation issues which do not arise in the case of other types of property. Business premises are liable for business rates.