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Commercial Properties and Leases: Improved Administration P68/2025

This proposition seeks to highlight and address long-standing inefficiencies and challenges in the management of Jersey’s commercial property market. These issues, if left unchecked, will likely have an increasingly negative impact on our economy and the vibrancy of many parts of the island, and indeed will continue to disproportionately affect small businesses.


By discouraging prolonged vacancies in commercial properties, reviewing lease structures to ensure they are fair and more easily understood, and introducing a digital register of commercial properties, the Island can unlock economic potential, support local businesses (in particular small businesses) and improve transparency.


I am asking Government to undertake a piece of work to understand what mechanisms should be available to tackle empty commercial properties. In St Brelade, for example, we have seen the impact at the Les Quennevais Parade and Precinct of retail units being left vacant for long periods. In some cases, the units have been empty for so long, with little to no upkeep and maintenance, that they are now almost “unlettable”. This contributes to the area looking tired, run down, and uncared for. It does not meet our ambitions for a vibrant and successful economy and community.


I am also asking Government to tackles the lack of any statutory duty placed on commercial landlords to maintain and repair their properties. This is especially an issue for small businesses in Jersey.


Most leases in Jersey are “Full Repairing and Insuring”, meaning that the tenant usually maintains the property, with the landlord responsible for structure/common parts, if agreed. If we take the example of commercial units at Les Quennevais Parade and Precinct, we can see that the full repairing and insuring lease is incredibly problematic due to the age and poor condition of the buildings. This acts as both a millstone around existing tenant’s necks, and a significant disincentive to new business.


Commercial landlords are not compelled by law in Jersey to maintain a minimum standard so tenants must protect themselves through lease drafting which requires significant legal expertise. For small business, the cost of such expertise can be a disincentive. Equally, the costs of enforcing a private contract with a landlord can be very high.


Clarifying obligations for repairs and rates should serve to reduce disputes and improve property maintenance. A standardised template for commercial leases would reduce legal ambiguity and promote fairer terms for commercial tenants and landlords. Clear mechanisms for rent and service charges will prevent exploitative practices and support long-term tenancies.


Finally, I am asking the Government to address an issue which has already been adopted by the Assembly. P.93/2020 was brought by then Deputy Mike Higgins to create a digital register of all commercial and rental properties in the Island. For the purposes of this proposition, I refer only to the commercial element. I wish to be clear that my proposal, consistent with that of Deputy Higgins’s, is not for the digital register of commercial property to be public.


Currently, the Government has no clear record of who owns commercial property in Jersey. As a result, it lacks the data needed to manage commercial property markets effectively. Without knowing who owns commercial property, the Government cannot identify whether monopolies or other anti-competitive practices exist that may be distorting the market and inflating rents and lease prices.


Access to this information would allow the Government to introduce appropriate measures, whether legal or fiscal, to prevent market abuses and distortions. It is therefore very much relevant to the issues that I am seeking to address through other parts of the proposition.


Here is the link to the full Report and Proposition

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© 2022  Helen Miles

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