Finding a business property
Consider whether your business needs a dedicated space and what you should think about when you’re looking for a business property.
Decide if you need a dedicated property
You may not need a dedicated property that is used solely for your business.
You could:
- work from an office in your home or garden
- rent space in a shared studio, salon or retail space
- use a serviced office
- book coworking spaces when you need them
You could run your business from home if:
- You are happy to meet clients or customers in public or in their homes or offices.
- Your work is quiet, happens during normal office hours and will not cause any nuisance to neighbours.
- Your work premises does not require any special permissions or inspections.
- Your business does not need much storage space.
- You work alone or all collaboration happens online.
- You are able to meet all regulations and health and safety requirements from your home.
- You have all the right permissions from your mortgage lender or landlord and insurance provider.
- You are happy to meet clients or customers in public or in their homes or offices.
- Your work is quiet, happens during normal office hours and will not cause any nuisance to neighbours.
- Your work premises does not require any special permissions or inspections.
- Your business does not need much storage space.
- You work alone or all collaboration happens online.
- You are able to meet all regulations and health and safety requirements from your home.
- You have all the right permissions from your mortgage lender or landlord and insurance provider.
You may not be able to run your business from home if:
- You need somewhere to showcase or demonstrate your products and services, or you rely on walk-in business.
- Your work produces noise, pollution, heat, waste or anything else that would be a nuisance to neighbours.
- Your work premises must meet certain regulations which you cannot achieve in your home.
- You need to be able to store stock, ingredients, materials or equipment.
- You plan to hire other people to work alongside you.
- You need defined work zones which cannot be accommodated within your home.
- The terms of your mortgage, lease or insurance prevent you from running a business from home.
- You need somewhere to showcase or demonstrate your products and services, or you rely on walk-in business.
- Your work produces noise, pollution, heat, waste or anything else that would be a nuisance to neighbours.
- Your work premises must meet certain regulations which you cannot achieve in your home.
- You need to be able to store stock, ingredients, materials or equipment.
- You plan to hire other people to work alongside you.
- You need defined work zones which cannot be accommodated within your home.
- The terms of your mortgage, lease or insurance prevent you from running a business from home.
Getting permission to run a business from your home
You may need permission to run a business from your home. Check with your landlord or mortgage lender, residents' or occupiers' association, insurance provider and local council.
You may need permission to run a business from your home. Check with your landlord or mortgage lender, residents' or occupiers' association, insurance provider and local council.
Use a serviced office or coworking space
Serviced offices and coworking spaces offer quick access to professional spaces without locking you into a long lease.
A serviced office is a furnished, managed workspace that includes reception services. You will usually have a space that’s exclusively yours and cannot be used by others.
Coworking spaces are similar, but do not typically provide call or mail handling services for their clients. You can rent desk or office space but may end up in a different desk or office each time you visit.
Both types usually have larger rooms that you can book for events, meetings and workshops.
Science parks offer coworking and shared office spaces for science and technology focused businesses.
Advantages
- Flexible, short-term contracts give you the freedom to increase or reduce space as your needs change.
- Includes utilities, cleaning and some equipment.
- Works for single-person businesses or small teams.
- Used by lots of other small businesses so can offer great networking opportunities.
- Flexible, short-term contracts give you the freedom to increase or reduce space as your needs change.
- Includes utilities, cleaning and some equipment.
- Works for single-person businesses or small teams.
- Used by lots of other small businesses so can offer great networking opportunities.
Disadvantages
- A traditional lease often works out cheaper over time.
- You may have to pay additional charges to rent meeting rooms or access storage.
- You may not be able to add signage or branding to your space.
- Offers less privacy and security than your own dedicated office.
- A traditional lease often works out cheaper over time.
- You may have to pay additional charges to rent meeting rooms or access storage.
- You may not be able to add signage or branding to your space.
- Offers less privacy and security than your own dedicated office.
Finding business premises and shared spaces in your local area
Your local business support service can help you find shared working spaces and science parks in your area. Contact your local council, growth hub or business support service.
Your local business support service can help you find shared working spaces and science parks in your area. Contact your local council, growth hub or business support service.
Rent or buy a business premises
Renting a commercial property
Renting is the most common way for small businesses to secure offices, workshops or trading premises.
When you rent a commercial property:
- your lease will say if you or your landlord is responsible for repairs
- you will have to renegotiate the terms of your lease when it is due for renewal
Lease premium
You may have to pay a lease premium in addition to your monthly rent.
This is an upfront lump sum that the landlord may charge if the property is in a high-demand area, the property has a below market rent, the property comes with fixtures and furnishings, or if you are taking on a long lease.
You may have to pay a lease premium in addition to your monthly rent.
This is an upfront lump sum that the landlord may charge if the property is in a high-demand area, the property has a below market rent, the property comes with fixtures and furnishings, or if you are taking on a long lease.
Buying a commercial property
Buying a commercial property is a significant investment. The upfront costs are higher, and you will have to pay Stamp Duty Land Tax as well as paying for legal advice and professional surveys.
When you own a commercial property:
- you will be responsible for maintenance, repairs and compliance with fire, health and safety and building regulations
- you may be able to sublet parts of the building to other businesses
Renting may suit if:
- Your business is new or is changing.
- You want to keep upfront costs low.
- You may need to move, expand or downsize in the short to medium term.
- Your business is new or is changing.
- You want to keep upfront costs low.
- You may need to move, expand or downsize in the short to medium term.
Buying may suit if:
- Your business is well-established.
- You have the funds to invest in a building and can expect it to increase in value.
- You want a stable base for your business and the property can meet any expansion plans.
- Your business is well-established.
- You have the funds to invest in a building and can expect it to increase in value.
- You want a stable base for your business and the property can meet any expansion plans.
Check if a property is suitable for your business
Make sure the property you want to lease or buy is suitable for your business.
- Ask your local council if your premises must meet any special requirements – for example, number and placement of sinks or toilets.
- Check if the property complies with health and safety, fire safety and accessibility regulations.
- Check what types of activities the building's planning use class covers – and find out how much it will cost and how long it will take if you have to apply for a change of planning permission.
- Check if you will need permission to put up signage or make changes to the interior or exterior.
- Check the buildings energy performance certificate to find out how energy efficient the building is.
- Find out who is responsible for repairs and maintenance and if there are any additional charges.
- Find out if there are any restrictions on deliveries, noise, parking or opening hours.
- Find out about utilities, like internet, power and water and waste collection.
- If renting, check what the lease says about ending the agreement early, (sometimes called a break clause).
Get legal advice
Speak to a solicitor before making decisions on a commercial property, particularly before entering into a long lease or agreeing to buy a premises.
Speak to a solicitor before making decisions on a commercial property, particularly before entering into a long lease or agreeing to buy a premises.
Budget for commercial property expenses
As well as paying rent or mortgage and business rates, you will need to budget for:
- heating, water, phone and internet
- service charges for shared services and maintenance
- waste and recycling services
- business insurance
- renovation, decoration and maintenance
Business rates
Business rates are a local property tax that you must pay if you own or rent non-domestic properties, like shops, offices, restaurants, warehouses, factories and holiday rentals. Business rates are set and collected by local councils.
Small businesses can apply for a discount on business rates, and some may pay nothing.