Choosing a commercial property is one of the biggest decisions a business can make. The right space can support growth, improve day-to-day operations and strengthen your brand. The wrong one can lead to unnecessary costs, poor customer access and limited room to expand.
Whether you are opening your first premises, relocating or investing in a larger site, it is important to look beyond the rent or purchase price.
Location
Location is often the single most important factor when choosing your commercial property.
For customer-facing businesses, footfall can make a major difference. A property in a busy area with strong pedestrian traffic is likely to provide more visibility and attract more potential customers.
It is also important to think about the surrounding area. Consider whether nearby businesses complement your own, whether the location fits your brand and whether there are any planned developments that could affect the area in the future.
For office or industrial businesses, location may be less about footfall and more about road links, motorway access and convenience for staff.
Accessibility
A property should be easy for both customers and employees to access.
Parking is often a key consideration, particularly for retail, hospitality and office spaces. Limited parking can discourage customers and create frustration for staff.
Public transport links are equally important. Properties close to bus routes, train stations or major road networks are often more attractive, particularly for businesses with a larger workforce or regular visitors.
You should also consider delivery access, and the overall convenience of getting to and from the property.
Layout
The internal layout of a property can have a significant impact on how efficiently your business operates.
A property may have enough space overall, but if it is poorly configured it may not suit your needs.
For example, a retailer may need open floor space, stock rooms and a layout that encourages customer flow. Offices may require a combination of open-plan areas, private offices and meeting rooms. A restaurant may require a pre-fitted kitchen and customer area.
It’s also important to consider whether the space allows for business growth in the coming years, whether you are looking to expand your staff or stock. Considering this early can help avoid complications later down the line.
Set up costs
The purchase price or rent is only part of the total cost of a commercial property.
You should also consider the condition of the building and any work that may be needed before moving in.
Refurbishment, decoration, flooring, lighting, utilities and heating systems can all add significantly to the cost.
In some cases, a property with a lower rent may end up being more expensive overall if it requires extensive work.
Usage
Before committing to a commercial property, make sure it can legally be used for your intended business activity.
Different commercial properties have different planning use classes, and not every building can be used for every type of business.
There may also be restrictions around opening hours, signage, parking, noise levels or alterations to the building.
If you plan to change the use of the property or carry out major works, you may need additional planning consent.
Checking these issues early can help avoid delays, unexpected costs and legal complications later.
Heads of Terms
Before entering into a commercial lease, it is important to carefully consider the Heads of Terms.
This document sets out the main points of the proposed lease and can have a major impact on the overall cost and flexibility of the property.
Key areas to consider include:
- Tenant and landlord break clauses
- Rent review provisions
- Is a deposit required?
- Repairing and maintenance responsibilities
- Will you have the right to renew the lease at the end of the term (under The Landlord & Tenant Act 1954).
- Whether you can assign or sublet the property in future
- The length of the lease term
- Whether VAT is payable on the rent
This is only a partial list of the terms that should be considered. Please also refer to the Code of Leasing business Premises https://www.rics.org/profession-standards/rics-standards-and-guidance/sector-standards/real-estate-standards/code-for-leasing-business-premises-1st-edition
These points can affect how easy it is to leave the property, manage costs and adapt if your business needs change.
Taking professional advice at this stage can help you avoid agreeing to terms that may become restrictive or expensive later.
Final Thoughts
The right commercial property should support your business both now and in the future.
By focusing on these factors, you can make a more informed decision and avoid costly mistakes.
If you are interested in purchasing or leasing a commercial property or would like further advice, please do get in touch with our commercial team on 0117 973 4940.
