How can a fund pre-let industrial space before the current tenant leaves?
A fund pre-lets industrial space by confirming early that the unit is coming back (a served notice, a break exercised or a clear decision not to renew), agreeing access for viewings under the lease, and marketing the unit to suitable businesses while the outgoing tenant is still paying rent, then signing an agreement for lease that starts on handback. Scayled supplies the list for that approach: 250 to 350 businesses the building suits, the person who signs at each and a drafted approach per business, ready in about five working days and never made public.
- When can a fund start pre-letting?
- What makes an industrial pre-let work?
- How is a pre-let documented?
- Who should you approach for a pre-let?
- What are the risks of pre-letting?
- What does Scayled cost for a pre-let campaign?
When can a fund start pre-letting?
As soon as it is reasonably certain the unit will come back: the tenant has served notice, exercised a break, or said clearly it will not renew. Before that point, marketing the unit risks damaging a relationship that might still renew.
Check the lease for the landlord's right to show the unit to prospective tenants during the final months, and agree a viewing routine with the outgoing tenant. Most tenants cooperate when it is handled with notice and minimal disruption.
What makes an industrial pre-let work?
Timing. The incoming business has its own lease to end, its own fit-out to plan and its own move to schedule, so the businesses to approach are those whose timing could line up with the handback date. Starting months ahead gives both sides room.
Clarity on condition. Settle dilapidations and any refurbishment early, so the incoming tenant knows what it is taking and when the unit will be ready.
How is a pre-let documented?
Usually through an agreement for lease: the parties agree the lease terms now, and the lease starts when the unit is handed back with vacant possession and any agreed works are done. A long-stop date lets either side walk away if handback is delayed too long.
Legal advice matters here, because the outgoing tenant may overstay or the handback may slip, and the agreement has to deal with both.
Who should you approach for a pre-let?
Three groups. Businesses with live requirements, through agents and listing portals. Businesses nearby that are growing out of their current site, since industrial occupiers rarely move far. And businesses across the wider market whose operation suits the unit's size, height, yard and access.
Scayled finds the second and third groups. It lists 250 to 350 businesses the unit would suit, prioritising those with dated signs of growth or an expiring lease, along with the decision-maker at each and a drafted email. The fund sends the emails, so the outgoing tenant is simply left off the list.
What are the risks of pre-letting?
The outgoing tenant may overstay, dispute dilapidations or delay handback, which can push back the incoming tenant's start. The incoming business may withdraw before the lease completes. And marketing too early, before the outgoing tenant's decision is firm, can turn a possible renewal into a departure.
Keep the approach discreet until the decision is certain, document the agreement carefully, and keep a second interested party where possible.
What does Scayled cost for a pre-let campaign?
Funds run Scayled campaigns on vacancies and on expiries ahead of them, which is where pre-lets are won.
A pre-let campaign is bought like any other: The Campaign, US$749 for the Full 250 to 350 businesses or from US$449 for a Focused 100 to 150, paid once with no subscription and no commission. Briefed as soon as the handback is confirmed, it is ready in about five working days, which leaves most of a notice period for viewings and an agreement for lease. It runs alongside any appointed agent; how to lease a vacant warehouse without an agent covers the case where there is none.
Lease The Vacancy In-House, Before You Appoint An Agent.
The Campaign finds the 250 to 350 businesses the building suits, names the person who decides at each and writes every email, ready in about five days. One payment of US$749 per property, no commission and no subscription. A focused 100 to 150 from US$449.