Being in a position to start searching for the perfect commercial premises is an exciting milestone for any business owner. Whether you’re expanding, relocating, or launching a new venture, that empty unit represents countless opportunities and potential.
However, it can also present numerous challenges if you don’t set the right foundations.
From thorough assessments and critical upgrades to careful planning for how best to use the space, this guide intends to help you transform an empty commercial unit into a thriving business investment.
Check that the prospective premises meet your needs
Finding a great commercial space can be a challenge, and what’s right for one business is different for another. However, there are a few key factors that every business should think about. The first is location, which is important for several reasons. Not only do you need to be close to key resources and suppliers, but you also want footfall from walk-in customers or easy access for clients.
You also want the space to grow with you, ideally, so look at units that allow you the opportunity to expand without needing to relocate every few years. This is particularly important if you plan to invest in a renovation, because you don’t want to waste money on a space only to then repeat the process with the next location. Another factor to think about is accessibility—those who need passage to and from your property, from existing and prospective supplier deliveries to employees and customers alike.
Engage a professional to assess the space
While an empty unit may appear to be an appealing blank canvas, the reality often harbours hidden problems. The best protection against this, and something that should be a non-negotiable for anyone investing in property, is to engage the services of a surveyor to assess the building.
A RICS Level 3 Building Survey is a comprehensive evaluation that will include an in-depth inspection of the property, an examination of defects and areas in need of repair, and any structural problems, as outlined here by Cosey Homes.
The findings from a detailed survey don’t just reveal problems—they provide powerful negotiation power and help you understand the true cost of making the property fit for purpose. Doing so could save your business thousands of pounds, either through renegotiation of the terms of your lease or by walking away from properties that would wind up being financial sinkholes.
Remain compliant and within regulations
Once structural elements have been checked, commercial properties come with a web of compliance issues that can’t be ignored, with building regulations, planning permissions, and local authority stipulations all being the first to meet if you plan to renovate.
Fire safety assessments are critical too, especially if you’re changing the use of the building or expecting public access. Emergency exits, fire doors, alarm systems, and evacuation procedures all need to meet current standards and be outlined well in advance of using the space. Accessibility requirements under the Equality Act apply to most business premises, potentially necessitating ramps, accessible toilets, and appropriate doorway widths.
Energy Performance Certificates can also be valuable to reveal running costs and where the property might benefit from upgrades to meet minimum standards. Failing to address these compliance issues before opening can result in enforcement action, hefty fines, or even closure orders.
Review essential infrastructure and system provisions
The internal systems determine whether the business will function effectively day to day. Electrical systems, for example, need sufficient capacity for the equipment you’ll be installing and meet the relevant safety standards.
Many older commercial buildings were wired for very different business needs than today’s technology-dependent operations demand, so this may need updating. You will similarly need to ensure that there’s adequate socket positioning throughout the space for your required layout.
Plumbing and heating systems also need to be fit for purpose—efficient and suited to your business type. A café, for example, has completely different requirements than an office or retail space, with systems tailored accordingly. Likewise, security systems, access control, and CCTV protect your investment and might even be required by your insurer.
Understand your fit-out requirements
Fit-out work varies considerably, depending on the current state of the property and your company’s needs. There are different levels, depending on whether you’re taking on a bare shell, a Category A space with basic finishes and services, or a Category B fit-out with partitions and facilities. Knowing the difference will help you budget more accurately.
Working with reliable contractors who can be trusted to adhere to tighter timelines becomes essential, as does realistic project management that accounts for the inevitable delays and complications. A fit-out needs to balance any budget constraints with being able to create an environment that reflects your brand and enables your team to work effectively.
Many companies underestimate these costs by as much as fifty percent or more, which immediately puts a strain on your working capital that would be better spent supporting your business growth.
Taking on commercial property is one of the most significant investments your business will make, but the monthly rent is just one component of the true cost. Due diligence in the form of building surveys, compliance assessments, and realistic budgeting protects your business from expensive surprises and potential catastrophe.
Empty commercial units hold enormous potential, but transforming that potential into a flourishing business requires a realistic look at all the preparation and unseen work needed before you settle in. Approaching property decisions with your eyes wide open and all thorough assessments completed in advance will help you position yourself for sustainable success, rather than costly regret.
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