How to secure a suitable workshop, factory, or commercial unit

To secure the right premises, you must find a location that fits your physical needs, confirm it has the correct Planning Use Class (usually B2 or E for makers), and negotiate a lease that includes a "break clause" to give your business flexibility as it grows. Do not sign anything until a solicitor has reviewed the contract and you have checked the Business Rates liability with the local council.

1. Start your search

Finding commercial property is different from finding a home. While portals like Rightmove Commercial and Zoopla are useful, many of the best industrial units are held by local commercial agents or the local council.

• Contact local agents: Call agents in your area and ask to be put on their mailing list for industrial units or workshops.
• Check the Council: Many UK councils own "enterprise hubs" or small industrial estates specifically designed for startups and small manufacturers. These often have more flexible terms.
• Walk the area: Often, units will have "To Let" boards with direct contact details for landlords that haven't hit the major websites yet.

2. Understand Planning Use Classes

In the UK, every building has a "Use Class" which dictates what you are allowed to do inside it. If you use a building for something it isn't cleared for, the council can force you to stop. For manufacturing, you generally need to look for:

Class	Description
Class E (g)(iii)	Industrial processes which can be carried out in a residential area without detriment to its amenity (light industrial).
Class B2	General Industrial (for processes that might involve noise, vibration, or smells).
Class B8	Storage and distribution (warehousing).

Tip: If a unit has the wrong class, you can apply for "Change of Use," but this takes time and money, and there is no guarantee the council will approve it. Aim for a unit that already has the correct class.

3. The Viewing Checklist

When you visit a potential unit, look beyond the four walls. Think about the practicalities of a working production environment:

• Power supply: Does it have "Three Phase" electricity? Heavy machinery often requires this rather than standard domestic power.
• Access: Can a delivery van or heavy goods vehicle (HGV) actually turn into the yard and reach your loading door?
• Ceiling height (Eaves height): If you need to stack materials high, the floor space is less important than the total volume.
• Floor load: Is the concrete floor reinforced to take the weight of your machinery?

4. Negotiating the Lease

Commercial leases are complex and usually "FRI" (Full Repairing and Insuring), meaning you are responsible for fixing the roof if it leaks, not the landlord. Negotiate on these key points:

1. The Rent: Don't be afraid to offer lower than the asking price, especially if the unit has been empty for a while.
2. Rent-Free Period: Ask for 1–3 months rent-free at the start to allow you to set up your equipment before you start making money.
3. Break Clause: This is vital. It allows you to end the lease early (e.g., at year 3 of a 5-year lease) if your business needs to move or close.
4. Security of Tenure: Ensure the lease is "inside" the Landlord and Tenant Act 1954. This gives you the right to renew the lease when it ends.

5. Business Rates and Extra Costs

The rent is not your only cost. You must account for Business Rates. Many small units in England with a "Rateable Value" of less than £12,000 qualify for Small Business Rate Relief, which can reduce your bill to zero. Always check the Valuation Office Agency (VOA) website to find the rateable value of the property before signing.

Finally, once you have agreed on terms (known as "Heads of Terms"), instruct a commercial solicitor to handle the legal transfer. They will check for "burdens" on the land and ensure you aren't walking into a legal trap.