The Complete Guide toRenting a CommercialPropertyThe Complete Guide to Renting a Commercial PropertyContentsContents 2Introduction 3Picking out a Commercial Property What Questions to Ask What is a !usiness "ease# $"ease %egotiations $Rental Costs& !usiness Rates and 'ther (ees )Rent *eposits& Guarantees and 'ther (inancial +atters ,Re-ie.ing the Rent and +aking Changes /0u1letting 23The "ength o4 the "ease 230er-ice Charges 22*e4aulting 22Applications 4or '1taining Consent 22'rganisations that 5ndorse the Code 23'ther 6se4ul "inks 2A1out us 2$Commercial Property Industrial 6nits& '44ice 0pace to Rent2The Complete Guide to Renting a Commercial PropertyIntroductionI4 you o.n any commercial property& it7s 8uite likely that you7ll end up needing commercial planning permission at some point9 :ere7s our guide on e-erything you need to kno.9;ou7ll need to apply 4or planning permission i4 you< !uild anything ne. =such as additional parking& garages& etc9> +ake any ma?or changes to your e@isting 1uilding such as 1uilding e@tensions Change the o-erall use o4 your 1uilding =such as changing it 4rom a .arehouse to an o44ice>To 4ind out i4 you need 1usiness planning permission& get in touch .ith your local planning authority ="PA>90o& ho. do you do that#Commercial Property Industrial 6nits& '44ice 0pace to Rent3The Complete Guide to Renting a Commercial PropertyPicking out a Commercial Property What Questions to AskPerhaps the most important part o leasing a commercial property is making sure you choose the right one! What type o property are you looking or"Are you looking 4or a retail property& or an industrial 1ase& or perhaps a studio# It may 1e& o4 course& that youAre looking 4or a com1ination o4 t.o or three B this is especially common i4 youAre a larger 1usiness looking 4or a head o44ice9 Whate-er your situation is& kno. e@actly .hich type o4 property you need 1e4ore you start looking9#o$ much space do you need"This ties in 8uite .ell .ith the a1o-e pointC essentially& as .ell as kno.ing the details o4 .hich tasks the o44ice .ill 1e used 4or& youAll need to kno. the speci4ics o4 these tasks9 (or instance& i4 you need an o44ice .ithin your industrial space& youAll also need to kno. ho. many desks youAre going to need& .hich 4acilities youAll .ant and ho. much space =speci4ically> youAll need to 4it it all in9Which on%site acilities do you re&uire"Another key point9 ;ouAll need to make a goodBsiDed list o4 A"" o4 the 4acilities youAre going toneed& in e-ery area o4 the 1usiness9 (or your o44ice& youAll need internet and telephone lines& 1ut you might also need meeting rooms& space 4or presentations& audioB-isual e8uipment as .ell as 4acilities 4or sta44 such as canteens and kitchens& 1athrooms and 1reakBout areas9 *epending on .here the o44ice is 1ased& you might not need A"" o4 these 4acilities& 1ut ensure youA-e got them all co-ered in some capacity9 The same goes 4or 4acilities in industrial and manu4acturing areas o4 the company9What impression do you $ant to make"A companyAs o44ices can say a lot a1out the 1usiness itsel49 Cutting edge companies .ill .ant a cutting edge space& 4or e@ample& ?ust as a traditional solicitorAs 4irm .ill .ant o44ices that gi-e the impression o4 solidity and pro4essionalism9 ItAs possi1le to modi4y the internals o4 a 1uilding B and reno-ation is de4initely an option B 1ut ensure that youAre a1le to achie-e this .ithin the terms o4 the lease 1e4ore you make any agreements9Commercial Property Industrial 6nits& '44ice 0pace to Rent'The Complete Guide to Renting a Commercial PropertyWhat is a (usiness )ease"When you*re planning to lease ne$ +usiness premises, there are a lot o dierent things to consider-A 1usiness lease is a legally 1inding contract 1et.een the o.ner o4 the commercial property =the landlord> and the occupier =tenant>9 I4 either party 4ails to comply .ith the terms o4 the agreement& it could result in court action9In terms o4 1eing the occupier& The 233E Code 4or "easing !usiness Premises =.eAll simply re4er to this as Athe lease codeA 4rom no. on> pro-ides the 4rame.ork 4or ho. the landlord should operate9:o.e-er& itAs only guidance< itAs not a guarantee that the landlord .ill comply .ith it to the letter9 As a result& itAs a good idea to educate yoursel4 on .hat it in-ol-es9)ease .egotiations/nce you01e made your application, your )PA $ill decide $hether or not to grant you commercial planning permission- They0ll take into account things like2The landlords should make it -ery clear ?ust .hat youAre 1eing asked to agree on9 As the occupier& you should clearly understand< The duration o4 the contract The costs you .ill 1e e@pected to pay Which areas you .ill 1e held lia1le 4or What the terms and conditions are What the property is and .hat the agreed 1oundaries and means o4 access are Who the landlord is 1y nameCommercial Property Industrial 6nits& '44ice 0pace to Rent3The Complete Guide to Renting a Commercial Property;ou are .ell .ithin your rights to re8uest alternate terms i4 youAre unhappy .ith the initial ones& 1ut the landlord is e8ually a1le to re8uest a change in rent or duration as a result o4 the change you .ant9 Fust like any negotiation& itAs a1out striking a 1alance that allo.s 1oth parties to 1e happy9Commercial Property Industrial 6nits& '44ice 0pace to Rent4The Complete Guide to Renting a Commercial PropertyRental Costs, (usiness Rates and /ther 5eesThere are a num+er o dierent costs you are likely to incur $hen rentingcommercial property, and $e*re going to co1er them in this section- Any or all o these costs may +e rele1ant to you, so it*s important to do your research $hen taking on a commercial lease-Rental CostsThis .ill o1-iously 1e your largest e@pense .hen leasing property9 (or smaller or startBup 1usinesses& itAs o4ten .ise to ha-e a guarantor 4or your rentC i4 youAre una1le to get one& then a rentalguarantee .ill pro1a1ly 1e re8uired9 This .orks in much the same manner as a traditional deposit B the guarantee .ill 1e deposited into a locked account .hich the landlord .ill 1e a1le to dra. 4rom i4 you do not 4ul4il your o1ligations9Commercial rent is normally paid 8uarterly in ad-ance on the 4ollo.ing 8uarter days< +arch 2$th& Fune 2th& 0eptem1er 23th and *ecem1er 2$th9 Any additional costs =.hich .eAll co-er 4urther do.n the page> .ill also 1e due at this time9R6767(6R2 These payments are due .hether or not you recei-e an in-oice& and itAs your responsi1ility to ensure theyAre paid 1y the due date9 Additional charges can 1e su1stantial& and your landlord .ill 1e entitled to make them under the lease9 In other .ords< make sure you pay your rent on time9Proessional 5eesThese are a standard part o4 o1taining any lease9 6sing a sur-eyor is particularly .ise& especially i4 youAre planning on a longer term lease9 :o.e-er& sur-eyors arenAt al.ays cheap< they can 1e up to ten percent o4 the annual rent& and dis1ursements and GAT can 1e included on top o4 this9(usiness RatesThese are calculated according to the rental -alue o4 the property9 The e-aluations carried out 1y The Galuation '44ice Agency =G'A> and are re-ised e-ery 4i-e years9 =WeA-e co-ered 1usiness ratesin more depth in our article A Guide to !usiness Rates>9 0cotland has its o.n system called %onB*omestic Rates9 The most recent re-isions in 1oth countries .ere in 2323& so 232$ .ill see ne. ones made9Commercial Property Industrial 6nits& '44ice 0pace to Rent8The Complete Guide to Renting a Commercial Property/ther )ikely Costs)ocal authority costs- These can include parking and .aste collection9Insurance- Contents insurance is a must 4or any company looking to protect its resources9 In some cases& you may also 1e held responsi1le 4or paying the 1uilding insurance& 1ut 1e sure to check it9Running costs and ser1ices charges- +uch as you .ould 1e .ithin a residential property& you .illlikely 1e held responsi1le 4or paying 1ills on things like electric& gas& internet and other ser-ices96PC 96nergy Perormance Certiicate:- ItAs a legal re8uirement 4or any commercial property to ha-e an 5PC 1e4ore the lease is completed unless youAre entering into a license or renting ser-iced o44ice space9 *ou1le check to ensure you .onAt 1e held responsi1le 4or paying these costs9;eposits- This is usually the e8ui-alent o4 three to si@ monthsA rent9 you .ill 1e lia1le 4or any sum that arises as a result o4 damage done to the property9 The "andlord and Tenant Act 2/$ gi-es you the right to e@tend your tenancy .hen the lease runs out unless the landlord can demonstrate speci4ic circumstances such as rede-eloping the property or occupying the space themsel-es9 5nsure that you o1tain pro4essional ad-ice to ensure your interests are ser-ed and protected9Commercial Property Industrial 6nits& '44ice 0pace to RentAAThe Complete Guide to Renting a Commercial PropertyCer1ice ChargesAs is the case $ith residential property rental, ser1ice charges are typically included as part o rental rates-:o.e-er& you should al.ays ask the landlord to 1e e@plicit regarding .hich ser-ice charges .ill 1e included and ho. youAll 1e calculated9 Also check .hether youAll 1e asked to contri1ute to any capital impro-ements& such as< "ong term repairs or replacements o4 structures Repairs o4 4a1ric +aintenance and repairs o4 machinery and e8uipmentRepairs are o4ten a contentious issue9 ;ou should esta1lish .hether or not itAll 1e your responsi1ility to carry out .orks on the property during the lease period9 'n some leases& the occupier .ill 1e re8uired to put the property into a 1etter condition than it .as in .hen the lease .as actually taken& so ensure that this isnAt the case9 ;ou .ill& ho.e-er& usually 1e re8uired to keep the property in the same condition it .as in .hen you took the lease9ItAs also a good idea to check i4 any alterations or impro-ements .ill 1e co-ered under the landlordAspolicy9Commercial Property Industrial 6nits& '44ice 0pace to RentA2The Complete Guide to Renting a Commercial Property;eaultingIt*s important to remem+er that your lease is a legal contract +et$een you and your landlord, and that there $ill +e serious conse&uences should you +reach the contract-The landlord can take legal action against 1oth you and any guarantors9 Property la.s can 1e e@tremely comple@& and you should de4initely seek pro4essional legal ad-ice in order to 1e clear on .hat your rights are9 ItAs important that the landlord noti4y you i4 youAre in 1reach o4 your contract& and gi-e you a reasona1le opportunity in .hich to remedy the 1reach 1e4ore legal action is taken9Where-er possi1le& you should try to remain on good terms .ith your landlordC this .ill make almostany situation easier to handle& and .ill allo. you to run your 1usiness .ith minimal outside interruptions9Applications or /+taining Consent;ou .ill need to make applications to the "andlord during the lease i4 youAre planning to carry out any alterations or i4 you .ant to su1lease9 ;our o.n lease should speci4y that the landlord doesnAt ha-e permission to unreasona1ly .ithhold or delay his consent in matters such as this9Commercial Property Industrial 6nits& '44ice 0pace to RentA3The Complete Guide to Renting a Commercial Property/rganisations that 6ndorse the CodeAssociation o4 !ritish Insurers B ...9a1i9org9uk!ritish Council 4or '44ices B ...91co9org9uk!ritish Property (ederation B ...91p49org9uk!ritish Retail Consortium B ...91rc9org9ukCommunities and "ocal Go-ernment B ...9communities9go-9ukCon4ederation o4 !ritish Industry B ...9c1i9org9ukCore%et Glo1al B ...9corenetglo1al9org9ukThe (orum o4 Pri-ate !usiness B ...94p19org9uk(ederation o4 0mall !usinesses B ...94s19org9ukIn-estment Property (orum B ...9ip49org9ukThe "a. 0ociety o4 5ngland and Wales B ...9la.society9org9ukThe Royal Institution o4 Chartered 0ur-eyors B ...9rics9orgWelsh Assem1ly Go-ernment B ...9.ales9go-9ukCommercial Property Industrial 6nits& '44ice 0pace to RentA'The Complete Guide to Renting a Commercial Property/ther Dseul )inksThe Code 4or "easing !usiness Premises in 5ngland and Wales 233E...9leasing1usinesspremises9co9uk!ills 1e4ore Parliament...9pu1lications9parliament9ukHpaHpa1ills9htm!uilding Regulations...9communities9go-9ukHinde@9asp#idI2233E:ealth and 0a4ety 5@ecuti-e...9hse9go-9uk0er-ice Charge Code...9ser-icechargecode9co9ukTo.n Planning ="ink 0ite>...9ukplanning9comHukpHinde@9htm6ni4orm !usiness Rates...9-oa9go-9ukCommercial Property Industrial 6nits& '44ice 0pace to RentA3The Complete Guide to Renting a Commercial PropertyThank youpallmallestates-co-uk 323 ,/,) E222H3222 22, 3333in4oJpallmallestates9co9uk , +ill4ields Road"ondon5$ 30!A+out usPall +all 5states specialise in letting great -alue commercial property across the 6K& accommodating all 1usiness siDes9 Whether looking 4or a relocation or a 4irst o44ice& Pall +all 5states7 team o4 property e@perts .ill 1e happy to help9Commercial Property Industrial 6nits& '44ice 0pace to RentA4The Complete Guide to Renting a Commercial PropertyCheck out the .ide range o4 properties .e currently ha-e on o44er9Commercial Property Industrial 6nits& '44ice 0pace to RentA8