Empowering Commercial Tenants : The importance of Alternative Power access in Lease Agreements
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Empowering Commercial Tenants : The importance of Alternative Power access in Lease Agreements
MEET OUR GUEST EXPERT
As load shedding eases for the moment temporarily due to impending elections , the inevitable return of loadshedding looms , necessitating proactive measures . As a retail tenant we don ’ t have a reasonable back-up and we are navigating fluctuating power disruptions akin to shifting hemlines proving very costly , and we are relying on generators for sustenance .
Yet , if your lease remains silent on this critical matter , what recourse do you have regarding access to the property ' s main generator ?
A
Understanding your rights to alternative power access in Commercial Leases is a critical element as part of your commercial lease .
SIMON DIPPENAAR Founder & Managing Partner Simon Dippenaar & Associates
With the unpredictable fluctuations in load shedding , reliance on generators and inverters has become paramount for sustaining business operations . As a commercial tenant , your lease agreement ' s stance on access to alternative power is crucial .
If your lease explicitly addresses this , detailing access terms and associated costs , you ' re in the clear . However , many leases , especially pre-load shedding era ones , lack such clarity . A recent dispute underscores the complexity surrounding possession of intangible assets like power .
In this case , a tenant in a shopping mall accessed the mall ’ s generator for backup power without additional charges . When the landlord introduced a diesel recovery levy , a dispute ensued . Despite ongoing arbitration , the landlord abruptly cut off the tenant ' s access , prompting legal intervention .
12 JUNE 2024 Real Estate Investor Magazine