The term ‘FRI’ when referring to commercial leases stands for Full Repairing and Insuring (FRI). This means that the tenant will hold full responsibility for the whole of the property and not just part of it in terms of maintaining and insuring. This will extend to the structure, external and internal building fabric and finishes along with mechanical and electrical services, external areas, boundaries and even underground drainage runs that serve the property.
When entering into a commercial lease as a tenant it is extremely important you understand the nature of the lease and your responsibilities under it and do your due diligence before committing. This is where a commercial building surveyor can help by carrying out a building survey or schedule of condition and even review certain lease covenants to ensure your commercial position is protected as much as possible.