Properties deteriorate over time, and dilapidations is the process which seeks to determine the allocation of responsibilities and resultant financial burden.

However, when dealing with dilapidations, landlords and their professional advisors also need to think beyond this process to ensure a building has the best possible chance of securing a new tenant once the existing occupiers vacate.

This is particularly the case for prime buildings where the expectation is to attract companies with strong covenants.

Such companies are increasingly likely to be subject to legislation around greenhouse gas reporting, have minimum performance requirements around energy and carbon, such as so-called minimum energy efficiency standards, and have in place Corporate Social Responsibility (CSR) policies- all of which will influence the type of buildings they choose to occupy. Therefore, it may be necessary to improve a building to secure a new occupier and this could interfere with the dilapidations process.