How to find and secure your business premises

Securing a physical location for your business involves finding a property that fits your operational needs and budget, and then signing a commercial lease. This is a major commitment, so it’s vital to do your research, understand the terms of the agreement, and always get a commercial property solicitor to review the lease before you sign anything.

Step 1: Define what you need

Before you start browsing property websites, you need a clear idea of what you’re looking for. A vague search will waste your time. Create a checklist covering:

• Use Class: In the UK, commercial properties have a 'Use Class' that dictates what they can be used for. Most shops, offices, cafes, and professional service businesses now fall under the broad 'Class E', which makes finding a suitable property much easier. Always check the permitted use with the agent.
• Size and Layout: How much space do you realistically need? Think about space for customers, staff, stock storage, and any back-office activities. Consider the layout – do you need an open-plan space or separate rooms?
• Location: Who are your customers and where are they? Consider footfall, visibility, local competition, parking, and public transport links. The perfect property in the wrong location is a recipe for failure.
• Budget: Your budget must cover more than just the monthly rent. You need to factor in Business Rates, potential service charges (for maintenance of common areas), utilities, insurance, and the cost of any initial fit-out.

Step 2: Start your search

Once you have your checklist, you can begin looking for properties. The best places to start are:

• Online Portals: Websites like Rightmove Commercial, Realla, and Zoopla are the best starting points for seeing what’s available in your target area.
• Commercial Estate Agents: Contact agents who specialise in commercial property in your desired location. They will have local knowledge and can alert you to new properties before they are widely advertised.
• On Foot: Simply walk or drive around your target areas. Look for 'To Let' signs and get a feel for the local business environment. You might spot a vacancy that hasn't been listed online yet.

Step 3: Viewing and shortlisting

When you view a property, look beyond the current decor. Pay attention to the practical details:

• What is the physical condition of the building? Check for signs of damp or damage.
• Where are the electrical sockets and data points? Are there enough?
• What are the heating and lighting systems like?
• Are the toilet and any kitchen facilities adequate?
• Is there sufficient security and fire safety equipment in place?

Take photos and make notes for each property so you can compare them accurately later.

Step 4: Understanding the lease agreement

A commercial lease is a complex and legally binding document. It is not like renting a flat. It is crucial you understand the key terms before you agree to anything.

Key terms to understand

• Term: The length of the lease, e.g., 5 or 10 years.
• Rent Review: A clause that allows the landlord to increase the rent at set intervals, often every 3 or 5 years.
• Break Clause: A vital clause that gives you or the landlord the right to end the lease early at a specific point, e.g., after 3 years of a 5-year lease. This gives you valuable flexibility if the business doesn't go to plan.
• Repairing Obligations: Many commercial leases are 'Full Repairing and Insuring' (FRI). This means you, the tenant, are responsible for the cost of all repairs and insurance for the building, not just your specific unit. This can be a significant hidden cost.
• Service Charge: If your unit is part of a larger building or estate, you will likely have to pay a service charge to cover the landlord's costs for maintaining common areas like car parks, lifts, and security.

This is the most important tip: Never, ever sign a commercial lease without having it reviewed by a qualified solicitor who specialises in commercial property. They will explain your obligations in plain English and can negotiate terms on your behalf. The cost of a solicitor is tiny compared to the cost of being trapped in a bad lease.

Step 5: Negotiation and signing

Most terms in a lease are negotiable. Once you’ve chosen a property, your solicitor can help you negotiate with the landlord or their agent. You might ask for a rent-free period at the start to give you time to fit out the shop, or for a break clause to be added.

Once terms are agreed, you will sign the formal lease agreement. After this is complete, you will get the keys and can begin the next steps of fitting out the space, arranging utilities, and getting your business ready to open.