Choosing premises

Choosing the right premises is a big decision. Making sure that your commercial premises meet your needs is vital – the substantial time and costs involved in business relocation mean that mistakes can be very costly. 

For a successful commercial property search, you need to have a clear focus on your business requirements. You also need to understand the key legal issues involved to avoid wasting time on the wrong kind of premises. 

Your business property requirements 

For many businesses, location is the first factor to consider. For businesses such as shops, restaurants and hotels, a prime location can make a dramatic difference. For offices and industrial premises too, ease of access for employees, suppliers, customers and other visitors can be a major advantage. 

Beyond that, you need to draw up a basic specification setting out the details of what you want. Basic features typically include the overall size, type of accommodation and layout. You should also think about any facilities and services you need such as parking or three-phase electricity, and how important the general appearance and condition of your commercial property is. If you are relocating, it’s helpful to think about how you use your existing business premises and what you would change. 

Premises tenure and use 

The right kind of legal tenure will depend on your plans and budget. Small businesses with limited cash often look for a property licence offering short-term, flexible rental. Offices and small workshops are often available on licence. 

Businesses that want the security of a longer-term arrangement or need to invest in altering premises to meet their particular needs may prefer taking a lease, though initial costs are much higher. A wide range of commercial premises are offered on leases. For businesses with substantial cash resources, buying freehold can also be an option. 

At the same time, you need to ensure that you get premises that have planning permission for your kind of use. If you are renting or leasing premises, you are unlikely to be able to change the existing use class (such as light industrial or retail shop). Even if you own the premises outright, applying for a change of use can be expensive and may not succeed. 

Your commercial property search 

A clear list of your requirements – including the kind of tenure you want and a rough budget – helps you search efficiently. The commercial departments of estate agents in your chosen location are an obvious source of information, as are online property listings. Local councils and business support organisations can help and are often major landlords themselves. 

Your aim should be to draw up a shortlist of potential properties. A quick visit should help you decide whether premises are a realistic option. Once you have found a likely candidate, you’ll usually want a survey and legal advice before committing yourself. Effective use of professional advisers can help you negotiate a better deal, and also leaves you free to concentrate on drawing up a company relocation plan. Even for a small office, business moving can be very disruptive.