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Inspecting Premises Before Signing the Lease — KYTOM

Inspecting Premises Before Signing the Lease

Actual usable area, a significant gap between listing and operation

The gap between advertised floor area and usable floor area can represent several hundred square metres on an office floor: signing a 3-6-9 lease without a prior study means risking paying for unusable space for 9 years. The question, therefore, is not « are the premises attractive » but « how many workstations will genuinely fit, at what fit-out cost, and under which regulatory regime ». The pre-lease feasibility study compares commercial promises against the actual ratios observed on the office market (8 to 12 m² per workstation in open space), against applicable standards (articles R4214, current environmental regulations, ERP (public-access building), accessibility for people with reduced mobility) and against the fit-out budget. It rates 10 points as green, amber or red, becoming a technical document for the broker, a negotiating lever for the tenant, and a safeguard for the landlord. Kytom has been supporting this work since 2006.

Inspecting Premises Before Signing the Lease
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A commercial brochure advertises 1,200 m² of usable space. Office reality frequently delivers 950 usable square metres once cores, mandatory circulation paths and zones without natural light are removed. The first marker of a feasibility study therefore remains the m² per workstation ratio. The NF X 35-102 standard sets a minimum of 10 m² per employee in an individual office, 11 m² in a shared office and 15 m² in open space (IDET, 2024), benchmarks on which French office practices are aligned and which we systematically find in our pre-lease studies.

Kytom takes the landlord’s plans and recalculates three distinct floor areas:

  • the advertised area (commercial);
  • the gross rentable usable area (GRUA);
  • the actually usable area once cores, regulatory circulation paths and blind zones are deducted.

Our reading here diverges from the dominant broker practice. Market doxa presents the GRUA as the reference enforceable against the landlord. In practice, the GRUA significantly overestimates the area actually programmable into workstations: it includes low-plenum zones, technical shafts and blind corners that space planning cannot exploit. The only indicator that protects the tenant over 9 years is the net usable area, not the GRUA.

A rectangular floor accommodates 80 to 120 workstations better than a fragmented floor of the same surface area. Shape weighs as much as surface area. The report includes a check of the hiring trajectory at 24 months and calibrates a reserve of 10 to 15% additional workstations, the condition for a lease signed without regret six months after moving in.

When this floor-area analysis is not warranted. Below 300 m², or for a derogatory lease of 36 months maximum without a renewal option, the detailed reprocessing of the three areas adds little value: the absolute gaps remain limited and the room for negotiation is narrow. A focused visit and a simple ratio check are then sufficient. The full floor-area study takes on its full meaning from 500 m² upwards, or as soon as a firm 3-6-9 lease is being considered.

Inspecting Premises Before Signing the Lease
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Technical audit of the building, AHU, BMS, plenums and electrical capacity

Office floors are not all equal. An undersized AHU, an obsolete BMS, electrical supplies capped at 25 W/m² where modern office uses, including IT densification and video-conferencing terminals, require more, plenums too low to run a dual-flow ventilation system, every gap weighs on the fit-out cost and the duration of the works.

Kytom audits the building with the relevant engineering firms across four lots:

  1. structure and technical floors;
  2. building services (HVAC, plumbing, smoke extraction);
  3. high- and low-voltage electrical systems;
  4. acoustics (the NF S 31-199 standard of March 2016 defines the acoustic performance of open-plan office spaces).

For the broker or real estate advisory partner: this report shifts the ten-year liability and the risk of technical costing error from the agent to the signing engineering firm. A search mandate that leads to a lease signed on false technical assumptions turns against the introducer in nearly all cases where liability is sought. The Kytom report, integrated into the presentation file, provides an enforceable document in the event of post-signature dispute. To date, our studies delivered to advisory partners have not given rise to any tenant claim regarding a technical discrepancy.

The report flags the discrepancies and their financial translation, line by line. An AHU to be replaced generally adds 80 to 150 € excl. VAT/m² to the fit-out budget. A false ceiling to be entirely redone represents a significant additional cost per m² of works. VDI cabling to be redone, in the order of 25 to 45 € excl. VAT/m². These orders of magnitude allow the tenant to cost the rent-free period required and the landlord’s contribution to be negotiated before signing, never after.

Limit of the in-depth technical audit. For premises delivered new or renovated less than 3 years ago with handover reports available and a current two-year warranty, a full engineering audit across the four lots proves redundant. A documentary review (handover reports, as-built documentation, latest regulatory inspections of the AHU and electrical systems) is then sufficient, for a study cost divided by three. The full engineering audit becomes necessary for a building over 10 years old, with a vacancy exceeding 18 months, or with a change of use.

Inspecting Premises Before Signing the Lease
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Regulatory compliance, legal obligations applicable to workspaces and to establishments open to the public, incorporating the environmental requirements in force for new buildings

Each framework imposes its own constraints and authorisation timelines. Office premises not classified as ERP allow simple fit-outs. A fifth-category ERP classification changes everything regarding emergency exits, the alarm system, smoke extraction and materials (fire reaction, M classification). The current environmental regulations apply to heavy works, and accessibility regulations apply to establishments open to the public.

Kytom systematically checks:

  • the eligibility of the premises for the intended uses (offices, internal catering, coworking space, training room);
  • the authorisations to be filed (prior declaration, building permit, ERP works authorisation, CNPP Q18/Q19 file for insured sites);
  • accessibility for people with reduced mobility according to the orders in force;
  • the IGH (high-rise) classification where applicable.

Decree no. 2019-771 of 23 July 2019, relating to the obligations to reduce final energy consumption in tertiary buildings, imposes energy consumption reduction obligations on tertiary buildings of more than 1,000 m². Kytom incorporates this trajectory into the report, to prevent a lease signed today from becoming a non-compliant asset in five years.

When the regulatory component remains light. For non-ERP office premises, without internal catering or public reception, below the 1,000 m² threshold, the regulatory review is limited to the provisions applicable to workplaces (article R4214) and to employee accessibility. Mobilising a CNPP Q18/Q19 file or an IGH audit then makes no sense. The full regulatory analysis is warranted as soon as mixed use (training, catering, client reception), an ERP classification or a threshold being exceeded come into play.

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10-point checklist rated green, amber or red

The Kytom study draws on a grid of 10 checks inherited from our pre-lease practice since the agency was founded in 2006. Each point receives a rating of green (compliant, usable as-is), amber (reservation to be resolved through negotiation or costed works) or red (major incompatibility, walk away or renegotiate the rent accordingly).

The 10 points covered:

  1. net usable area versus advertised area;
  2. m² per workstation ratio over a 24-month trajectory;
  3. AHU and HVAC (capacity, age, compliance);
  4. high-voltage electrical systems (W/m² available);
  5. VDI and low-voltage systems;
  6. acoustics between floors and in open space;
  7. accessibility for people with reduced mobility;
  8. ERP, IGH classification, fire safety;
  9. the final energy consumption reduction trajectory set at 40% by 2030, 50% by 2040 and 60% by 2050 relative to a reference year between 2010 and 2019 (CSTB) and energy performance;
  10. overall fit-out cost per m² and negotiable landlord contribution.

On a typical 1,200 m² floor, a pre-lease study report generally brings out a few critical red points, several amber points to be covered by clauses and a base of green points that secure the schedule. The reds trigger a rent renegotiation or a landlord contribution towards works; the ambers translate into technical clauses appended to the lease; the greens secure the schedule for taking occupancy.

This 10-point grid serves as a technical document for the broker in their presentation file, as a costed lever for the tenant in negotiating the financial terms, and as a shared reference for the landlord to frame the make-good commitments. Production time: 10 to 15 working days depending on the size of the floor, for a cost ranging between 0.8 and 1.5% of the negotiated annual rent.

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Frequently asked questions

How much does a Kytom pre-lease feasibility study cost?

Between 0.8 and 1.5% of the negotiated annual rent, depending on the size of the floor and the scope (floor-area only, or floor-area + four-lot engineering audit + full regulatory review). On a 1,200 m² floor at 350 €/m²/year, the study comes out around 4,200 to 6,300 € excl. VAT. To be set against the post-signature fit-out budget, often significantly higher than the cost of the study.

What is the timeline for obtaining the report?

10 to 15 working days from receipt of the landlord’s plans and access to the site for a technical visit. An express format in 5 working days exists for urgent files before an LOI, limited to the 10-point grid without an in-depth engineering audit.

Does the study replace the inventory of fixtures on entry?

No. The pre-lease feasibility study takes place ahead of signing to qualify the premises and negotiate the terms. The inventory of fixtures on entry, agreed between tenant and landlord, takes place at the taking of occupancy and engages the make-good liability on exit. The two documents are complementary, never interchangeable.

Can a broker commission the study before the tenant signs the mandate?

Yes, in two formats: a direct broker order invoiced to the firm, or a tenant order with shared delivery. The broker-order format is common and allows the report to be integrated into the presentation file as an enforceable technical document, transferring responsibility for the technical costing to the signing engineering firm.

What happens if the report rates 3 points as red?

Three options depending on the tenant’s strategy: walk away from the premises, renegotiate the rent or obtain a landlord contribution towards works costed by the report, or maintain the signing with technical clauses appended to the lease covering the discrepancies. In every case, the report provides the costed basis for the decision.

05 — Inspirations

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