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Dancefloors and Dilapidations: How is the Closure of Nightclubs Affecting Dilapidations Claims?

According to a recent article, nightclubs are on the decline in the UK. The latest statistics reveal that 280 nightclubs closed in the UK over the course of four years. With an average of 10 nightclubs closing per month, experts blame rising costs such as rent and utilities coupled with changing generational social habits for why they’re disappearing from our cities and towns.

Due to the nature of my work, I have witnessed these closures firsthand. As more nightclubs close, more landlords and tenants seek advice on assessing dilapidations and applying Section 18 (Diminution in Value). 

Although I have worked on many cases recently, one case springs to mind. The client, a former tenant, ended a 15-year lease. The lease was signed before the Lehman Brothers collapse and banking crisis in 2008-2009.

The client spent a significant amount fitting out the building, but it never opened and sat empty for the entire lease term. That property will never be a nightclub again. I’m sure we will see a repeat of this story in the future for similar unused buildings.

In these circumstances, landlords need to enlist help repurposing vacant properties for other uses. This, in turn, affects the likely value of the buildings and impacts dilapidations claims.

For more information, please email neil@radius-consulting.com.

 

 

Neil Burridge

About the author

Neil Burridge BSc (Hons) MRICS ACIArb, RICS Registered Valuer

Neil has over 15 years of experience in professional and agency matters relating to commercial property throughout the UK and Ireland representing a range of corporate and private clients, investors and developers. He has extensive litigation experience, including cross-examination as a valuation expert witness in complex commercial property-related court proceedings

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Neil Burridge
BSc (Hons) MRICS ACIArb

RICS Registered Valuer

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