Model Commercial Leases: A property success story?

Model Commercial Leases: A property success story?
Almost one year after the Model Commercial Lease (MCL) suite of documents was launched, Tim Cooper, real estate counsel at Land Securities, examines how the documents have been received by the industry and reflects on his, mostly positive, experience with the MCL.
How has the MCL suite of documents been received by the property sector?

Generally it has been well received with support from various quarters, in particular many of the leading real estate law firms. It has been well publicised in the property press and one year after its official launch is being cited as a balanced lease. The launch itself was understated and to have got the traction and exposure it has received to date is testament to the quality of the product itself.

Feedback from landlord and tenant solicitors has been positive and where it has been used on transactions there is a noticeable drop in the number of amendments as against ‘traditional’ leases which tend to offer negotiation fall back positions.

What has been the degree of uptake?

Uptake among the wider commercial/institutional landlord community has taken time. From the outset it was acknowledged that the MCL was not going to be adopted unaltered by every landlord, and while it represents a fair position, it allows and accepts there needs to be flexibility to adopt it in whole or in part enabling landlords to keep their cherished positions wherever they want. Land Securities has adopted the MCL but there are certain areas where additional management or investment controls have been added to respond to the particular requirements of our portfolio. It is used not just on wholly owned assets, but also in joint ventures (JVs) without issue.

We have experienced in a number of instances when using a precedent other than the MCL, proposed ame

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