Business Development

Renting a Commercial Property: What You Need to Consider

Business Advice | 23 June 2023 | 8 months ago

You only need to spend a moment or two browsing available commercial properties to rent, to see just how many options are available. There really is something for every business size and type, but this can make it difficult to find the perfect property for you. In this blog, we have taken a look at the ins and outs of renting a commercial property.

What Type of Property Do You Need?

When you are renting a commercial property, consider the space that you need. You might only need room for a handful of desks and a private office or two, or you might need enough space to house dozens of busy employees, customers and clients. You should also think about the location, which is something that a lot of businesses overlook. Once you have found a commercial property to rent, think about how the location fits your needs. If you rely on foot traffic, you need to choose a location in a busy part of town, with a lot of pedestrians passing by who could potentially pay you a visit. If you regularly have meetings and networking events, you will need to be close to public transport links and have parking available. This makes it simple and straightforward to visit your premises.

You also need to consider how customers will travel to your business. If you are a business that customers visit in person, you need to think about the impression that the location gives. Renting a commercial property in an upmarket area will reflect well on your business, showing that you can afford to be located amongst other successful businesses. Plus, transport links and a good amount of parking could encourage customers to visit your business over a competitor. The aesthetic of the property is also important, as not all styles of property will work for your industry. If you are a technology based or innovative company, you might prefer a property that is modern, contemporary and reflective of this. If you are a building company, you will need to rent a commercial property that is well built, professional and impressive.

What Facilities Do You Need?

There are a lot of different commercial properties on the market, and it’s important to avoid rushing into choosing the first one that you come across. Not only could this result in you paying more than you need to, it runs the risk of leaving you renting a commercial property that doesn’t have everything that you need to operate your business. For example, not all commercial properties have conference rooms, yet many businesses and industries rely heavily on meetings. If you do choose the wrong property, you will have the added stress of moving premises sooner rather than later.

Similarly, a lot of businesses require a kitchen, as this helps employees to feel relaxed, comfortable and taken care of at work. However, not all commercial properties have a kitchen and it’s not uncommon for those that do to have a very small space. If you have a large team that are expected to be working in the office each day, you might need better kitchen facilities. This is especially true if you are located away from local supermarkets, cafes and restaurants, meaning that staff are bound by the restrictions of a packed lunch.

It’s also important to think about facilities that are specific to your business. For example, do you need space to house industrial equipment? If you do, do you need permission to have them in the commercial property? Not all commercial properties cater to the same industry facilities, so this is something that you need to check and compare before signing a lease.

How Will You Fund the Lease?

There is no denying the fact that running a commercial business costs money, and a lot of this is due to the cost of renting business premises. When you are renting a commercial property, you need to think about how you will fund the lease. If you don’t have the cash readily available, you might need to apply for a grant or a loan to help you to pay, until the business’ revenue is large enough to take over. If you need an investment, you will need to sort this out ahead of time, and ensure everything is in place before signing the lease. After all, you don’t want to sign on the dotted line, only to find it a struggle each month to pay the rent. As businesses grow, most find that the turnover takes care of a lot of running costs, including renting a commercial property.

When you are looking for a commercial property lease, think about the terms of the lease. If you plan to stay in the property for a long time, you need to consider how long the lease is for and what are your options to extend it. If you think you will outgrow the property quickly, you need to think about break clauses and a short term rental option. Carefully review the lease agreement, including the terms and conditions. Pay close attention to the rental rate, lease duration, renewal options and any additional costs such as maintenance fees and utilities. It’s important to know what you are responsible for and how prices could increase in the future.

You should also clarify the responsibilities for maintenance and repairs with the landlord, as these responsibilities could require your time, management and additional costs. Understand who is responsible for the upkeep of common areas, repairs and any necessary modifications to the property. Ensure that all obligations are clearly outlined in the lease agreement before you sign.

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