Finding and managing business premises

Rent your first business premises

How to find, evaluate, and secure your first commercial property as a pre-trading or early-stage business.

UK-wide
Guide summary

Start looking for business premises 3-6 months before you need them. Check if the property suits your business and understand the difference between a lease and a licence. Always get legal advice before signing any agreement.

  • Start searching 3-6 months before moving in
  • Use commercial property agents or online portals
  • Check the property's use class matches your business
  • Understand leases (long-term) vs licences (short-term)
  • Get a condition survey before signing a lease
  • Negotiate a rent-free period for fit-out
  • Check business rates and relief options
  • Consider location, access, and footfall
  • Ask for a break clause in long leases
  • Get legal advice before signing any agreement
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UK-wide

Related guides in Premises & Operations

Taking on commercial premises is one of the biggest financial commitments you will make as a new business. Get it right and you have a base to grow from. Get it wrong and you could be locked into an expensive lease that drains your cash flow.

Allow 3-6 months from starting your search to moving in. This gives time for viewings, negotiations, solicitor work, and any fit-out you need.

Lease or licence?

Before viewing properties, understand the two main ways to occupy commercial space. Your choice affects your legal rights, flexibility, and costs.

What to check before signing

Before committing to any commercial property:

  • Use class: Confirm the property's planning use class matches your business activity. Class E covers most commercial uses (shops, offices, restaurants, light industrial) but not all. Changing use class requires planning permission.
  • Condition survey: For FRI leases, get a chartered surveyor to prepare a Schedule of Condition before signing. This records the property's existing state and limits your repair liability to that level.
  • Service charges: In multi-let buildings, check the service charge history and budget. Unexpected service charge increases can significantly affect your costs.
  • Business rates: Check the rateable value and whether you qualify for Small Business Rate Relief. Ask the landlord or local council for the current rates bill.
  • Break clauses: Negotiate a break clause allowing you to exit the lease early (typically at year 3 or 5 of a longer lease). This gives you flexibility if the business does not grow as expected.
  • Rent-free period: Most landlords offer 1-3 months rent-free for fit-out. Negotiate this before signing — it is much harder afterwards.

Alternatives to a traditional lease

If you are not ready for a commercial lease, consider these lower-commitment options:

  • Serviced offices: All-inclusive monthly fee covering desk space, meeting rooms, reception, and utilities. Flexible terms (often monthly). Higher per-desk cost but zero upfront investment.
  • Co-working spaces: Shared workspace with hot desks or dedicated desks. Good for networking and keeping costs low in the early stages.
  • Pop-up shops: Short-term retail lets (days to months) for testing physical retail before committing to a lease.
  • Home working: No premises costs, but check your mortgage/tenancy agreement permits business use and inform your home insurer. You may need to pay business rates on the portion used exclusively for business.
  1. 1

    Define your requirements

    List your must-haves (size, location, access, use class) and nice-to-haves before searching. This prevents wasting time on unsuitable properties.

  2. 2

    Budget for total occupancy costs

    Rent is only part of the cost. Add business rates, service charges, insurance, utilities, and any fit-out costs to get your true monthly premises cost.

  3. 3

    Get a condition survey for FRI leases

    Before signing any Full Repairing and Insuring lease, pay a chartered surveyor to prepare a Schedule of Condition. This could save you thousands at lease end.

  4. 4

    Negotiate a break clause

    Insist on a break clause allowing you to exit the lease early. A 10-year lease with no break clause is a significant risk for a new business.

  5. 5

    Instruct a commercial property solicitor

    Do not sign a commercial lease without legal advice. A solicitor will review terms, negotiate amendments, and ensure you understand your obligations. Budget £1,000-3,000 for solicitor fees.

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