COMMENT The metamorphosis of the industrial estate has been well documented over the years – from factories spewing noxious gas and heavy industry to today’s more innovative, efficient and nuanced tenants.
But, while commercial use of this sector has changed, the understanding and governance perhaps has not kept up, which leaves a gap where many questions arise as to who takes responsibility when different businesses co-exist that have never been bedfellows before?
Unlikely neighbours
For example, should a nursery be allowed to rent industrial property next to a warehouse operating heavy machinery, with logistics vehicles constantly entering and exiting a busy road both properties share? Who is the guardian of health & safety and where does fault lie should the worst happen? The landlord? The occupier?
What if the warehouse operator was there first and the nursery came after? Should the warehouse be responsible for the wellbeing and safety of young children coming and going next door?
The rise of microbreweries on such estates is a fun topic with visitors treated to tasting sessions with outside pub tables in the summer months. But should tipsy patrons be hanging around a busy logistics estate, perhaps less aware of the traffic and more likely to take an unnecessary risk?
Who is responsible for the welfare of the visitor and what are the implications if an accident happens?
The landlord has some responsibility to oversee the tenant mix and for health and safety issues within the common parts of industrial estates, via the managing agents. But these issues are far from simple. Temporary businesses and flexible plnning use class E do muddy the waters somewhat.
Staying safe
We have experience in advising landlords and managing agents on the maintenance of health and safety within common areas of industrial estates and have designed safe walkways, traffic management systems and so on. But each will have its own complexities and, depending on the nature of the businesses operating and the make up of the asset, it’s not always easy to understand the art of the possible for landlords and that’s why an expert should be appointed to advise.
Then there’s the legality and insurance which bring their own challenges and scenarios.
It’s brilliant to see repurposing of what was formerly only used as out and out industrial property. But, some guidance and practicality needs to be applied so that insurance keeps up to date, landlords and other businesses aren’t accidentally on the hook for misuse of property, and to prevent unimaginable accidents.
James Porter is a partner at Rapleys
