Industrial and logistics tenants should tread carefully when considering whether their fit-out works require explicit landlord consent, McGuireWoods London associate Hannah Irish advised in a Dec. 2, 2024, article in BE News, which covers the built environment industry. This is due to the fact that there can be ambiguity when determining whether works are internal and non-structural (and therefore typically do not require landlord consent) or whether they go beyond this scope.
In the article, Irish explained that the consequences of making alterations without the necessary landlord consents could be significant, potentially even giving rise to a risk of forfeiture.
“The best approach for tenants is to maintain open lines of communication with the landlord,” wrote Irish, a member of McGuireWoods’ Real Estate & Land Use Department. “Sharing early iterations of fit-out plans gives landlords the opportunity to consider them in detail and raise concerns early, avoiding the risk of tricky last-minute discussions. Tenants should also highlight relevant lease provisions to the technical advisors instructed on the fit-out so the team can form a cohesive view on whether specific consent is required in each instance.”