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Reinstatement & Why It May Be Necessary for Office Spaces

Posted by on February 13, 2022

As we know, most commercial and industrial spaces share this one thing in common. The landlords of commercial and industrial spaces such as office spaces may require the rented unit to be reinstated to its original condition upon expiry of lease. This is usually also indicated in the tenancy agreement.

As Per Condition During Handover

The condition expected when the lease expires is usually as per the initial handover condition when the landlord first handed the keys over to the tenant. This is only fair as the landlord initially handed the unit over in its original condition and likewise returning the unit to the landlord in the same original condition is only fair.

Different Businesses May Have Different Requirements

As different companies or businesses may have their own preferences and priorities, the renovations done by the previous tenant may or may not be to the next tenant’s liking and hence it may be necessary to reinstate the office space to its original condition. Some companies also have their own corporate colour and preferred corporate image.

Looking for The Next Tenant

Whenever a lease is expiring, the landlord would usually want to look out for the next suitable tenant to rent the office space in the shortest amount of time possible and because of this, the landlord may not want to restrict their options by retaining the previous tenant’s fixtures and fittings. By opting to have the fixtures and fittings retained, the potential pool of tenants may become smaller as only tenants who see value in the renovations would be attracted to the fitted office space whereas those who do not see value may choose not to take up the lease because of the design and layout of the fitted office space.

Landlord May Sometimes Be Agreeable To Retain Certain Fixtures & Fittings

Sometimes certain landlords may be agreeable to retain certain fixtures and fittings done by the previous tenant if the landlords see value in the renovations done and believe that the renovations done may benefit the next tenant. However, you may note that this will depend very much on the landlord’s preferences. It would also likely depend on the design and condition of the fixtures and fittings and whether the renovation done by the previous tenant adds value to the office space.

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