Yes. Warehouses and distribution centres typically involve heavier use, specialist structures, and larger external areas. These factors make specialist and experienced valuation input particularly important when assessing the real impact of disrepair.
Is your warehouse dilapidations claim backed by evidence or just a repair schedule?
There's a difference.
A schedule of dilapidations lists what's broken or damaged. A properly assessed and presented dilapidations claim shows whether fixing it actually matters to property value, future lettability, or marketability.
For warehouse and logistics properties, that distinction can mean the difference between a £250k claim and an £80k settlement. Or between a landlord pursuing an undefended position and one that withstands commercial scrutiny.
Roof repairs that don't affect letting potential. Yard works that exceed market expectations. Redecoration in spaces that the next occupier will immediately change. Works that will be superseded to ensure the property meets modern EPC requirements. These are items that we regularly see on schedules of dilapidations, but how often do they stand up to a valuation challenge?
Without a proper technical valuation assessment, tenants are at risk of overpaying, with landlords pursuing unsupportable claims.
Dilapsolutions provides expert dilapidations advice to both landlords and tenants across the warehousing and logistics sector, helping to resolve claims fairly, proportionately, and with commercial pragmatism.
We understand the pressures faced by facilities teams, operations managers, directors, and in-house legal teams, and we work with you to protect value, control cost, and avoid unnecessary disputes.
A Practical, Sector-Specific Approach
Warehouses and distribution centres are not offices. Issues such as roofing, cladding, loading bays, yards, canopies, M & E systems and high-use internal areas require specialist understanding and experience.
Tenants faced with dilapidations claims typically instruct their own building surveyor to negotiate to a lower sum. But this risks failing to properly apply the underused statutory Section 18 (“Diminution in Value”) defence which, only if known about and used, caps settlement at the lower of the remedial costs total negotiated between building surveyors, or the impact on the property’s open market value. This is usually significantly less. Applying this cap is generally outside the expertise of the building surveyor. and is instead something that a specialist chartered valuation surveyor (Valuer) deals with.
The cap works because almost all vacated warehouses and distribution centres require modernisation works to best present them to the open market, as well as to meet modern regulations (e.g. EPC). Those works inevitably snuff out (supersede) many of the dilapidations items costed and agreed between opposing building surveyors, often “big ticket”, ranging from new roofs, to brand new offices. Knowing and understanding the open market so as to fully apply this defence is the expertise of the Valuer only.
Our team works extensively within the warehousing and logistics sector and brings together these two disciplines that are often treated separately:
- Chartered Building Surveyors who assess condition, repair obligations, and compliance with the lease covenants
- Chartered Valuation Surveyors who assess the true impact of disrepair on value and lettability
This combined approach ensures dilapidations claims are grounded in reality, not inflated repair schedules.
Dilapidations FRS 102
FRS 102 is an accounting provision applicable in both the UK & ROI, whereby a company can obtain full corporation tax relief on capital set aside annually to accrue to a professionally estimated dilapidations liability sum at lease end/break. This is the “Dilapidations Liability Assessment” provided by a chartered surveyor.
Supporting Warehouse & Logistics Tenants
For tenants, dilapidations claims can feel one-sided, technical, and difficult to challenge, particularly when large sums are involved.
Dilapsolutions offers a clear advantage for tenants: two surveyors for the price of one.
By involving both a Building Surveyor and a Valuation Surveyor from the outset, we regularly reduce settlement figures by focusing on diminution in value rather than headline repair cost alone.
This approach helps tenants:
- Avoid paying for unnecessary or excessive works
- Challenge inflated schedules of dilapidations
- Reach quicker, more proportionate settlements
- Protect capital and cash flow at lease end/break
- Leverage the corporation tax benefits of FRS 102 by having a professionally estimated dilapidations liability sum at lease end/break
Early advice is critical, especially for tenants managing operational handovers or relocations.
Supporting Warehouse & Logistics Landlords
We also act for landlords seeking to protect asset value and ensure lease compliance across warehouse and logistics portfolios.
Our advice supports landlords by:
- Preparing robust, defensible schedules of dilapidations
- Ensuring claims are proportionate and commercially sensible
- Supporting negotiations to avoid prolonged disputes
- Aligning repair strategy with future letting or disposal plans
We focus on outcomes that protect long-term value rather than pursuing claims that may be difficult to justify or recover.
Why Dilapsolutions?
Deploying our industry-leading combination of Building and Valuation surveyors, we are currently negotiating down claims on millions of square feet of vacated space, including units of over 500,000 square feet in the Golden Logistics Triangle, and plenty of 100,000 square feet upwards spread across the UK and Ireland. The team provides:
- Deep experience in warehousing and logistics properties
- Dual-surveyor approach combining building and valuation expertise
- Proven track record of reducing tenant liabilities
- Clear, commercial advice for landlords
- Practical guidance for facilities, operations, and legal teams
We are also a member of the UK Warehousing Association, reflecting our commitment to best practice and understanding of the sector.
Do dilapidations apply differently to warehouses and distribution centres?
Why is valuation advice important in dilapidations claims?
A valuation surveyor assesses whether disrepair alleged by the landlord genuinely affects value or future lettability. In many cases, challenging this valuation reduces claims significantly by avoiding a purely cost-based approach.
How does the two-surveyor approach benefit tenants?
Tenants receive advice from both a Building Surveyor and a Valuation Surveyor for a single fee from the outset. This often leads to lower settlement figures and stronger negotiation position.
Can you act for both landlords and tenants?
Yes. We act for both parties but never on both sides of the same dispute. Our advice is always independent and role-specific.
When should tenants seek advice?
As early as possible. Ideally, before the lease end or immediately after receiving a schedule of dilapidations. Early involvement usually leads to better and more cost-effective outcomes.
Obtaining an exceptionally well-prepared Schedule of Condition at the beginning of the process when a tenant takes on a new lease can also be helpful to reduce future dilapidations liabilities.
What is FRS 102 and why does it matter in dilapidations?
FRS 102 is an accounting provision applicable in both the UK & ROI, whereby a company can obtain full corporation tax relief on capital set aside annually to accrue to a professionally estimated dilapidations liability sum at lease end/break. This is the “Dilapidations Liability Assessment” provided by a chartered surveyor.
Do you work with in-house legal and property teams?
Yes. We regularly support in-house counsel, estates teams, facilities managers, and directors, providing clear advice that aligns with commercial and legal objectives.
Speak to a Warehousing & Logistics Dilapidations Expert
Whether you are a landlord protecting asset value or a tenant facing a dilapidations claim, our sector-specific expertise can help you reach the right outcome.
Get in touch for a practical, confidential and no-obligation discussion.
Services
Dilapsolutions
Chartered Surveyors
We are the only dilapidations consultancy in the UK & Ireland that provides both Chartered Building and Valuation Surveyors, ensuring the best results for our clients.
