Letting a Commercial Property

Finding the right property for your business

You will need to decide which type of property will suit your business needs

Whether your business needs office space, a shop, a warehouse, or industrial space, you must make sure the location is what you need.

Consider whether you need a prominent location to make your business easy to find and attract passing trade, or whether a quitter location will suit. Think about access for deliveries etc, will you need connections to major road or rail networks.

Obviously, the location will be a major factor in the rent and rates you will pay. So, explore various alternatives, our experienced Commercial team, will be pleased to share their local knowledge.

Factor in the costs

Rent - Generally, the rent is paid in advance on quarter days, 25th March, 24th June, 29th September 29th and 25th December. However, some leases will stipulate rent is paid monthly in advance. A long-term lease, will usually include Rent Reviews, which will alter the rent you pay at various times over the course of the lease.

Most landlords will ask for a rent deposit (usually the equivalent of three to six months’ rent) to be paid.

Depending on the location and type of building the Landlord may ask for a Premium. This is a lump sum payable when taking on a new lease. If you are taking over an existing lease you may also need to pay a premium.

Business rates - Are paid by every kind of commercial property. How much is paid will depend on the properties rateable value the level of the uniform business rate (UBR) which is set by Central Government. You may be able to claim Business Rates Relief for example if you are a small business. You may also be liable additional payments such as the Crossrail levy.

Check if there are any additional local authority charges for services such as parking and waste collection.

Legal Costs – as well as your own legal costs you will usually also be responsible for paying the landlord’s reasonable legal fees.

Insurance and service charges – you will likely be responsible for paying service charges on the building and insurance costs. Find out how they will be apportioned if you are not the only business occupying the building.  

Stamp Duty Land Tax – you may be liable for this and will depend on the premium and rent.

Energy costs - the landlord is required to provide an Energy Performance Certificate (EPC) showing how energy efficient the property is.