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Rosé-tinted workspaces

23 Jul 2024

Office spaces with terraces are increasingly appealing to tenants and it’s no surprise that more and more new developments are offering outdoor space to meet that growing demand. One impressive example is Landsec’s Hill House scheme which is to offer an accessible terrace feature on every level.

From compact balconies to huge rooftops, these outdoor spaces offer a unique amenity, providing opportunities for relaxation, social gatherings, entertaining, a connection to nature and a change of scenery. A perfect spot for sharing a sundowner with colleagues or clients after a busy day, or just somewhere to take a breath and admire the view.

However, occupiers should be aware of several important considerations to ensure they make the most of this amenity while complying with regulations and maintaining a harmonious relationship with their landlord and other building occupants. A well informed and proactive approach is required at an early stage of lease negotiations in order to avoid potential disappointment later on. Our office leasing team have supported a number of tenants in identifying and addressing these issues which we advise should be considered and clarified before final terms are agreed.

Exclusivity

Even if the office does not have its own private space, many buildings offer impressive communal outdoor areas, such as rooftop terraces. This can be a real benefit for employee wellbeing and also provides an appealing venue for social events and client entertaining. Tenants should check whether the outdoor space is for their exclusive use or to be shared with others. If shared, it is important to seek clarity on the terms of use, including finding out who else is permitted to use it, the booking process and associated costs and restrictions.

Use restrictions

Before stoking up the BBQ and putting those summer tunes on, tenants should familiarise themselves with any specific rules or restrictions imposed by the building management team or landlord. These may include designated hours of use, noise or capacity limitations, and restrictions on the type of activities allowed on the terrace. Planning consents should also be checked as there may be further conditions attached to use of outdoor space, including noise restrictions, hours of use and restrictions on the installation of structures or equipment.

Noise and disturbance

While terraces can be a great place for social gatherings or meetings, tenants should be mindful of noise levels to avoid disturbing other occupants in the building or neighbouring properties. It is important to strike a balance between enjoying the outdoor space and respecting the peace and quiet of others.

Maintenance responsibilities

Depending on the lease terms, tenants may be responsible for the maintenance and upkeep of the terrace. This includes cleaning, repairing any damage, maintaining landscaping, and ensuring that the space is kept in good condition. A clear understanding of who is responsible for what is essential. If maintenance responsibility is going to fall on the tenant, then the terrace should be included in any physical survey or inspection carried out.

Health and safety

To tie in with understanding maintenance obligations, safety should always be a top priority when using a terrace. Tenants and their employees should be aware of any safety features such as railings, emergency exits, and fire safety equipment. Regular inspections and maintenance of the terrace should be conducted to ensure a safe environment for all users.

Insurance coverage

Tenants should check with their insurance provider to ensure that the use of the terrace is covered under their existing policy. Additional coverage may be required to protect against any potential liabilities or damage that may arise from using the outdoor space.

We recommend taking an ‘eyes open’ approach before you don those shades and soak up the sunshine.

How we can help

Please get in touch with our real estate team for further advice.

Oliver Morris

Partner
Commercial real estate

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