There are multiple reasons for relocating your business. From needing more space to moving closer to your target audience, a move is often exciting – as it can signal growth! However, the reality can be daunting. From service logistics to staff management, there are so many things to think of. And one of the most important? Managing the commercial property aspect of moving from one property to another.
However, in this blog post, we share our top 5 tips for relocating your business successfully.
1. Leave plenty of time
Preparation is key when it comes to moving your business. The process can take a long time and requires a lot of careful consideration – so rushing is not advised.
Firstly, we recommend doing your research a year before you want to move. Give yourself plenty of time to think of your reasons behind your relocation – and what you’d like to achieve in your new commercial property.
On average, the commercial property relocation process takes 6 – 9 months. This is the timeframe needed to source an ideal property and then negotiate terms. So you’ll want to be clear on your long-term vision and leave yourself plenty of time.
2. Ensure you understand your current lease
A lease running to an end is an opportune moment for many businesses to relocate. However, it’s unlikely to be as simple as leaving on the last day of the tenancy.
Regardless of whether it’s good manners to give your landlord notice or not, it’s often a legal requirement. Again, we advise notifying your landlord 6 – 9 months before your desired leaving dates so your lease can be finalised appropriately.
Your lease isn’t running to an end?
This is where it becomes more complicated – but not impossible.
Some would argue in the first instances it would be appropriate to discuss your plans with your current landlord, hoping they would be sympathetic to your situation. Unfortunately, this option rarely works out as it’s unlikely to be commercially beneficial to the landlord.
What we advise is analysing your current lease for a “break clause” – which offers both the tenant and the landlord the opportunity to end the lease after a predefined amount of time.
Where no break clause is included, you can negotiate with your landlord for an early lease exit. Although we recommend professional commercial property advice throughout the whole process to ensure you get the best deal, this is one of those moments where we think it’s non-negotiable.
A commercial property agent can help you secure a clean break, defining your legal liabilities before you exit the property.
3. Be aware of dilapidations
Just like moving home, moving your business has a significant cost that you need to budget for. However, this is often more significant on a commercial property level.
One of the big costs you need to be aware of is your dilapidations. These are considered “exit costs” to you – as the tenant. Essentially, the work you need to do to get the property to an agreeable condition – before you hand the property back to the landlord.
You will have to complete these repairs for the lease to be legally terminated – and can be a shock for those who have been quick to confirm a lease originally.
Our advice is to ensure you have a clear picture of what dilapidations are included before going ahead with the move – then speak to an expert commercial agent.
At Mounsey Chartered Surveyors, we can help dig deep into the real picture of your requirements – as sometimes dilapidations can be confusing and stressful. Helping you navigate, we can also negotiate a cost-effective way to fulfil your dilapidations.
4. Be clear on your new property
You’ve found the dream commercial property! It will be just right for your growing business plans!
Or will it? Finding a new commercial property for your business is exciting but again, much like when you leave your old property, you need to be well informed when confirming everything.
Firstly, it’s important you understand the basis you are taking on the new property. From undergoing a measured inspection to determining how the rent will be paid, there are many things you need to iron out – and get documented in the lease.
Although you may think you’ve got a good eye for terms & conditions, it’s very easy to miss clauses that could drastically affect you in the future. Having an expert confirm that the lease is in your best interests can ensure a prosperous lease of your new commercial property.
5. Take advice from an expert – from the start
The above four points all have something in common – expert commercial property advice.
When navigating the world of commercial property, it’s hard to endorse any other option.
As a significant advancement to residential renting, there is a lot more to commercial renting – and it is vital to go through it with a fine-toothed comb to protect your business’ future.
Taking advice at every single point is best recommended. From the very start, we can advise you on timescales, obligations, and liabilities of vacating a commercial property.
Furthermore, we then help you search for a property that’s right for your business model and operations – giving you an objective view of your options.
Once you’ve decided on the right property for your business, we’ll help you negotiate a fair and beneficial lease. We always explain the terms you don’t fully understand, check the small print and make sure everything – from the dilapidations to the schedule of condition – is in good order.
Why commercial property advice is vital during a business relocation
Seeking advice is not just about peace of mind. It’s about good business sense – and is in the interest of business owners, shareholders, CEOs, managing directors and so on to protect your business’ future by minimising property risk in the future.
Moving out of one property to another sounds simple on paper – but the reality is entwined with legalities and can affect your bottom line if not done correctly. That’s why we always say that investing in the right advice when you need it is an excellent commercial move.
Help with relocating your business to a new commercial property
At Mounsey Chartered Surveyors, our property consultants are experts in commercial property and commercial leases. We can help you make things crystal clear for you as a business owner – and commercial property tenant.
Formal lease agreements
Thinking of relocating your business in the next couple of years? The earlier you get advice, the better.
Speak to us to see how we can help you in relocating your business – and discover how our services can add value to your long-term business plans.