If you’re considering new Pizza Shop space for your business, there are several considerations that you should keep in mind prior to entering a deal.

Here are our 10 BEST TIPS to help you secure the best commercial property for your business needs..

 

Define Your Primary Goals

Securing the ideal location for your business is an exciting milestone. However, it’s crucial to maintain clarity on what truly matters during this process. Conduct thorough research to understand the average cost of commercial spaces in your desired area—consulting a surveyor can be beneficial. While some businesses may priorities the physical attributes of a space to ensure it meets their operational needs, focusing on what your business truly requires will significantly enhance your chances of finding the perfect property.

  1. Check Planning Permission

Whilst focusing on the technical specification of your ideal premises, it is often taken for granted you can use the space for any purpose. This is not always the case and you should clarify what is the permitted use designated by the local planning department to avoid you wasting months of unnecessary effort. This will of course, be checked by your lease solicitor during the legal due diligence process.

  1. Heads of Terms

A successful commercial lease starts with having clear Heads of Terms. The main terms to negotiate early include rent, rent reviews, lease renewal options, service charges, rent-free periods, break clauses, lease duration, repairs, and insurance. Ensure that all agreed terms are documented in writing and signed by both parties.

  1. Negotiation Opportunities

Evaluate the strengths and weaknesses of the landlord’s position. Take into account the current economic climate and how it might impact the landlord’s property. Generally, landlords prefer to have their units occupied rather than sitting empty. If you notice that certain parts of the building have been vacant for a while, this could give you leverage to negotiate better rent terms.

  1. Service Charges/Rent

Rent is typically the most important aspect of any commercial lease. Many landlords are open to offering a rent-free period to help you cover the costs of moving in during the first month or so. If the property includes shared facilities, expect to pay a service charge. This fee allows landlords to recover maintenance costs from tenants who share these amenities.

  1. Repairs

Before signing a new lease, it’s crucial to understand what repairs you will be responsible for. While “wear and tear” is expected in any property, you want to make sure you’re not held accountable for issues that aren’t your responsibility. If the landlord can’t fix the problem before you move in, you might consider asking for an additional rent-free period to cover the cost of any repairs you’ll need to make.

  1. Lease Renewal Terms

Consider whether you plan to stay in the property long-term. Not all landlords offer automatic lease renewals, as this option can be excluded from the contract. If long-term security is important to you, make sure your lease includes a renewal clause.

  1. Subleasing

It’s important to have a plan in case you decide to leave the property or close your business. Most landlords won’t allow you to terminate the lease early, meaning you’ll still be responsible for all lease obligations for the entire term, even if you stop using the premises. Subleasing can help, as it allows you to bring in a subtenant to share these responsibilities. However, keep in mind that you will still be liable for any unpaid rent or property damage caused by the subtenant.

 

  1. Rent Review

For leases longer than 1 year, it’s common to have a rent review clause that allows the landlord to adjust the rent at specific intervals. While this might seem unfavorable to tenants, it can also be an opportunity to negotiate a lower initial rent with gradual increases as your business expands. Additionally, long leases offer security, so it’s important to negotiate longer intervals between rent reviews.

  1. Legal Costs

Whenever possible, aim to have each party cover their own legal costs. Additionally, be sure to account for other expenses such as stamp duty, VAT, Land Registry fees, and surveyor fees. The total cost of securing a lease will depend on factors like the property’s size, location, and type, as well as costs associated with moving, installing fixtures and fittings, setting up internet and telephone connections, and any necessary repairs or alterations.