Top 8 Things to Consider When Leasing Commercial Property

Whether you are a start-up searching for a base for your business, or an established company needing to scale up – or downsize – finding a suitable property can be a challenge. If you’ve decided that leasing a premise is the best option for you, a commercial property solicitor can help you to negotiate many of the hurdles; but what things should you consider when searching for your business’s next home?

Is It Better To Buy Or Lease Commercial Property?

Affordability and your plans for your business will determine whether you should buy or lease property. Leasing offers greater financial security, as you can be certain about your monthly outgoings – rents are fixed, and maintenance is often the responsibility of the Landlord – while purchasing allows you to improve the appearance or size of the building, subject to planning consent, and to add more value to your business in preparation for sale.

What Type Of Property Do You Need?

There are many types of commercial properties available, but not all will suit your business. Consider the nature of your work, the facilities you need to operate efficiently, the volume of space you will require, and any regulations you are legally obliged to observe.

Where Is The Best Location?

Not all businesses are location-dependent but, for those that are, location can be critical. Passing trade provides a steady stream of custom for some retail businesses while, for others, storage capacity is more important than a visible presence on the High Street.

What Costs Are Involved?

Cost is obviously the main concern when planning your budget; lease outgoings can vary enormously and are dependent on several factors, such as the location, size, and type of property; the facilities that are provided; and the length of the contract. But other costs should also be considered, including surveyors’ fees, business rates, service charges, and insurance premiums.

What Type Of Lease Are You Signing Up To?

Not all leases are the same and the terms of the contract will vary accordingly. Gross lease, net lease, modified gross lease, and modified net lease are terms that may be confusing, so seek the professional advice of a commercial property solicitor before signing a contract.

Does The Lease Agreement Include A Break Clause?

While you never enter a commercial property lease intending to terminate it early, unexpected events can change your business’s fortunes. A break clause offers security for your business by allowing you to negotiate an early exit from the contract should the need arise, although the Landlord will probably impose conditions to protect their interests too.

What Facilities Do You Need?

For your business to operate efficiently, you may need certain facilities, such as meeting rooms, audio-visual equipment, high rolling industrial doors, or kitchens. Leasing the wrong property could mean vital business operations cannot run smoothly, so compile a detailed list before you create a shortlist of contenders.

How Energy Efficient Is The Property?

Energy costs are of paramount importance to most businesses in the current climate, while being able to advertise your commitment to sustainability can also attract customers. Check out the energy rating of all prospective properties, as those with a lower rating may increase your energy bills or require adaptations to make them more environmentally friendly.

Contact Us For Professional Commercial Property Advice

Astle Paterson are Commercial Property Solicitors in Burton on Trent and are ready to help you with all aspects of the leasing of commercial property rate. To find out more, please call us on 01283 531366 or message us here and one of our team will respond promptly.

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