Choosing the right commercial property

Preparing a clear business property specification is an important first step when choosing commercial property. A well-defined property spec helps you focus your search for commercial premises, compare options consistently, and avoid wasting time on unsuitable business property.

What is a property specification?

A business property specification, or property spec, is a written list of what you need from your commercial premises for business. It sets out your essential and desirable requirements. It guides your search for business premises to rent or buy, whether you are looking at larger sites or commercial properties for a small business.

Key points to include in your property spec

Your property spec might detail how the following requirements should be met when looking for suitable commercial real estate or business premises.

Property size and layout

Decide how much space you need now and, in the future, based on staff numbers, equipment and storage. Consider whether an open-plan layout, individual offices, or a mix of both will work best, and whether you need extra areas for equipment, storage, meetings, breakout spaces or socialising.

Property appearance

Think about how the business property looks both inside and out. If clients or customers will visit regularly, you may need a more visually attractive exterior and a professional, welcoming interior that reflects your brand and creates a good first impression.

Property structure

Identify any special structural requirements. For example, you may need high ceilings, upper-floor loading capacity, reinforced floors or foundations, or specific loading doors or access arrangements to support your operations.

Premises facilities

Consider the comfort and wellbeing of employees and visitors. Make a note of the standard of lighting, toilet and washrooms, reception or waiting areas, kitchen or tea points, and any staff welfare or breakout facilities you require.

Property utilities and connectivity

List the utilities and services you need for your commercial property to operate efficiently. This can include:

• adequate power supply and type (for example, three-phase electricity)
• heating and cooling systems to maintain comfortable working conditions
• sufficient power points for computers and equipment
• suitable water supply and drainage
• broadband speed and reliability, including fibre availability

Older buildings may need rewiring, upgraded heating or air conditioning, or additional toilet and kitchen facilities, so factor potential upgrade costs into your planning.

Planning permission and use

Check whether you may need planning permission or a change of use to run your type of business from the premises. Understanding this early can help you avoid delays or unexpected costs once you have chosen your commercial premises.

Access and parking

Think about how people and goods will reach your business property. Consider:

• proximity to main roads and public transport
• ease of access for deliveries and collections
• accessibility for customers, including disabled customers
• on-site or nearby car parking for staff, customers and visitors
• any need for cycle parking or other sustainable transport options

Option to extend or make alterations

Assess how flexible the commercial real estate is if your requirements change. Look at whether you can make internal alterations, install partitions, expand into neighbouring space, or extend the building in future, subject to any necessary consents.

Long-term business plans

Review your business plan and consider how the business premises you choose will support your long-term direction. Think about potential growth, new services or products, changes in staffing levels, or future technology needs, and whether the property can adapt to these.

Property location

Location is a crucial factor when choosing commercial property. You need to think about where your property should be to suit your customers, workforce and suppliers, as well as your brand image and operational needs. For detailed location factors you should consider, see choose the right location for your business premises. See, choose the right location for your business premises.

Property costs

Your choice of commercial property will also depend on your budget. Whether you rent or buy business premises, likely costs can include:

• initial purchase costs (if buying property), including legal costs and surveyor's fees
• initial alterations, fitting out and decoration
• any alterations required to meet building, health, safety and fire regulations
• ongoing rent (if leasing premises), service and utility charges, including water, electricity and gas
• business rates
• continuing maintenance and repairs
• building and contents insurance

It can be useful to compare the costs of buying business property with the costs of buying business property so you can decide which option is more suitable for your cash flow and growth plans.

Energy performance of the property

Energy efficiency affects both your running costs and environmental impact. Sellers and landlords must provide prospective buyers or tenants with an Energy Performance Certificate (EPC). An EPC shows how energy efficient a building and its services are and provides a good indication of likely energy costs. You may wish to prioritise commercial property for small businesses that offer better energy performance to help control long-term overheads. See Energy Performance Certificates for business properties.

Prioritising your requirements

If your property requirements are too specific, your choice of commercial premises for business may become very limited or too expensive. Divide your property spec into:

• essential requirements that you cannot compromise on
• desirable features that are beneficial but negotiable

This helps you stay flexible and make a balanced decision when comparing different commercial property options.

Considering working from home

Once you have drawn up your list of property requirements, you may decide that working from home suits your needs better, either full-time or as part of a hybrid model. If so, remember that there are important legal, tax and practical issues to consider, including planning, insurance and health and safety. See use your home as a workplace.