How to Find the Right Commercial Property - By: Tim Bishop

After staff wages, property costs are usually the second-largest overhead of most small or medium-sized businesses. Making sure that you find the right building for your business, and at the right price, is vital. Sadly many business owners don't take sufficient care when choosing commercial property.

Take a moment to think about exactly the specifications of the building you require. Does your business really require, at this stage, that you purchase a large prestigious office - could you make do with a smaller leasehold property to grow into, or even one of the managed business centres or serviced offices that are springing up in many towns and cities. You must then ensure that your business will really be able to afford your chosen premises. The fist stage is to wourk out how much you will actually have to pay - make sure you allow for all the costs - including utilities, business rates, any service charge, insurance, maintenance and of course IT. Make sure that your chosen premises are in the right location - it is amazing how many businesses struggle just because they are situated in the wrong location. Is it essential for you to be based in the city centre? Don't forget how important road and rail links can be. Take care to allow for the expansion of your business - there's no point taking out a ten-year lease without a break clause if you plan on doubling the size of your business in say two years.

Although very few business owners try to deal with the purchase of business premises without a solicitor, it's amazing how many small and medium-sized businesses try to do exactly that when renting premises. It is always advisable to seek experienced legal advice when purchasing a commercial lease, although the risks are not as high as purchasing a freehold property commercial lease's can be extremely complex. Renting commercial space can tie any business to potentially expensive and burdensome lease terms. Advice should be sought on matters such as maintenance, rent review, payment schedules, business rates, insurance, utilities, notice periods and what you will need to do to restore of the property when the lease ends.  In any event it always worth considering more flexible short-term licence agreements if your business requirements are likely to change - as these are generally involve less long-term commitment and easier to exit.

Don't forget when considering taking on business property, that in addition to commercial property agents and adverts in local papers, there are other ways to find your ideal premises. In particular don't forget your network of staff, friends, family and business contacts - it will surprise you how networking can open up opportunities to purchase commercial properties before they have even been placed on the market.

In summary, make sure that you do your homework before looking to enter a lease or buy commercial property and get the advice of a specialised commercial property solicitor.

About the Author

Bonallack and Bishop are Salisbury Solicitors with considerable experience in advising on both leasehold extension and enfranchisement. Tim Bishop is senior partner at the firm, responsible for all major strategic decisions. He has grown the firm by 1000% in 12 years and has plans for continued expansion. Tim sees himself as a businessman who owns a law firm.

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