Headaches and protracted negotiations at lease expiry could be avoided by well drafted Make Good clauses and thought out strategy (see Lease Make Good – The Pre Nup).

However, more often than not, the end of term Make Good obligations require negotiation between Landlord and Tenant.  This may be in the form of Lease incentives or other commercial considerations negotiated between the Property Manager, Asset Manager and the Tenant directly.

Alternatively, specialist Make Good advice can obtained from Napier & Blakeley.

What We Do – End of Term Claims:

We will discuss the overall asset strategy for the premises. This will consider what the owner ultimately wants from the Make Good process, i.e. a financial settlement, the Tenant to undertake the Make Good works or to use the Make Good figure part of their Lease renewal negotiations.

Undertake a review of the Lease and other tenure documentation prior to inspection, in order to determine and provide advice on the likely Tenant responsibilities.

Complete a detailed inspection of the Premises to determine the level of Make Good works which fall under the Tenant’s responsibility. Typically this would include the removal of their additions and alterations, reconfiguration of building services, renewal/repair of damaged elements and redecoration.

Finalise a comprehensive Make Good report, including outlining the Tenant’s obligations under the Lease. A fully costed schedule of works will be provided, in collaboration with our QS team, to provide current and accurate cost estimates for the required Make Good works.

Strategic claim progression advice will be provided, which is linked back to the overall Asset Management discussion at the outset.

We also have extensive negotiation experience and can help with the direct negotiations with the Tenant if so required.

When:

We regularly become involved in the Make Good process up to 18 months in advance of a Lease expiry. Our Make Good advice can be used in future budget planning and to open early discussions with the Tenant.

If the Tenant indicates they will undertake the Make Good works during the term, we can assume the role of Development/Project Monitor in order to ensure a fully compliant space is provided at Lease expiry. It can be difficult to claim for “poor workmanship” against the Tenant after the Lease has expired, therefore regular monitoring can be very useful.

At Lease expiry, we will inspect in order to determine the Final Schedule of Make Good following any repair or strip out works undertaken by the Tenant.

We can carry out pre- and post-Lease expiry negotiations directly with the Tenant in order to maximise any final settlement or scope of works.

Additional Services:

In addition to the “Standard” end of term Make Good claims, we also undertake the following services:

• Portfolio Make Good estimates
• Claim assessments and negotiations for Tenants
• Project Management/Development Monitoring of the works, for both the Landlord and Tenant
• Pre-lease schedules of condition
• Lease reviews
• Tenant alteration approvals
• Strategic claim progression and negotiations

We have a broad range of experience on both sides of a Make Good claim. This, coupled with our extensive cost data, allows us to provide tailored, expert advice for Landlord or Tenants on any Make Good claim, so contact us now.

Contacts

Transaction & Asset Advisory
Rob Howells – 03 9915 6300 – rhowells@napierblakeley.com
Alastair Walker – 02 9299 1899 – awalker@napierblakeley.com
Gavin Peach - 02 9299 1899 – gpeach@napierblakeley.com
Paul Mazoletti – 07 3221 8255 – pmazoletti@napierblakeley.com

Development Advisory & Quantity Surveying
Craig Smith – 03 9915 6300 – csmith@napierblakeley.com
Peter Hammond – 02 9299 1899 – phammond@napierblakeley.com
Paul Cosker – 07 3221 8255 – pcosker@napierblakeley.com
Adam Greene – 07 3221 8255 – agreene@napierblakeley.com

Property Depreciation & Insurance
John Mathew – 03 9915 6300 – jmathew@napierblakeley.com
Peter Guerra – 02 9299 1899 – pguerra@napierblakeley.com
Peter Osborn – 02 9299 1899 – psoborn@napierblakeley.com

Sustainable Property Solutions
Peter Frith – 03 9915 6300 – pfrith@napierblakeley.com
Craig Ryan – 03 9915 6300 – cryan@napierblakeley.com
Stuart Winton – 03 9915 6300 – swinton@napierblakeley.com