I would be very interested in seeing this tread updated with developments as you go along. Lovely space.
If its on a lease, how long have you had to commit to? Someone local to me could not get the space they wanted until they agreed to a 5 year lease. I have never rented commercial property so I don't know if relatively long leases are common.
I agree it's a lovely space and wish you all the best with it Keith.
Jay - you can get units on short leases, it really depends on the situation in your town, but generally across the country there are plenty of empty units that are losing the owners money every day. If you take a short lease don't expect many other deals, and they won't let you do much to the space unless it's written in that you will put it all back after.
Generally yes longer leases are common, I've always included break clauses in any properties I've rented out or rented from landlords. A break clause can work in various ways, but ultimately it's an easy way of saying "this isn't working". There is little point a landlord insisting a tenant stays if the place isn't making home any money, it's just going to go wrong. Some landlords don't care of course.
If you sign a longer lease with a break clause (say 5 or 6 years, possibly longer, with a break clause at end of year 2) you can do more haggling. The last property I rented I signed a 7 year lease with a break clause at the end of year 2, and I didn't have to pay any rent for the first 9 months as long as I fixed the leaking roof. The roof cost me £400 to fix, I saved 22.5k in rent.
If a unit has been sat empty for a long time (do your homework) you can haggle hard. If it's an industrial unit after 6 months sat empty the owner has to pay rates, if it's commercial and not industrial they only get 3 months off, so it's costing them rates, security costs, advertising costs if they are pushing it in the papers - they will want it gone. If they get an offer from an up and coming or established business they see pound signs, the ideal situation for any landlord is long leases secured on all their properties, not only do they have no outgoings (unless there's a commercial mortgage attached) but they have a good regular income and can see it going well into the future. Many will use that to secure the finance for their next purchases.
If you are negotiating and nervous of signing a lease of more than a couple of years then they will be worried you don't have he confidence in your business - I would be if you wanted to rent from me, and no way would you be getting a deal. Just make sure you ask for a break clause, it can be written so only you can activate it, they can't kick you out early at the break clause.
Keith - sorry to hog your thread. I hope it all goes really well. It would be great to see updates as you progress. Is your premises easily accessible to the public? On an industrial estate or off the high street?
