Image showing a hand drawing a fit out plan

Set up your space

There are a number of things to work through when choosing and setting up your space. Whether you occupy premises and wonder what to do with leftover space; want to start operating as workspace provider; or own some space that you want to let out - we have included checklists below to help you take on your new space and set up operations. Should you require further advice, please do not hesitate to contact us.

FINDING A SITE

  • Local agents - Call local commercial agents (e.g. Strettons, Kalmars, JLL) and find out if they have sites on their books which match what you’re looking for
  • Councils - Speak to both Commercial and Regeneration teams at the council - their phone numbers will often be available on the council website. Some councils may even have pages on their website dedicated to available commercial properties
  • Community members - If you have a local network, ask around and see if anyone knows if there are vacant premises
  • Personal contacts - You never know who could help until you’ve asked - it’s always a good idea to speak to your personal contacts
  • Online - Property websites like Zoopla or Realla offer a wide range of spaces available on the market
  • Other websites like Gumtree may also have suitable premises listed in their ‘property’ section

VIEWINGS

  • Structure - Look for any signs of damp or water leaks
  • Access - Consider whether the site is easily accessible for users, deliveries and whether it might have any security issues
  • Neighbours - Work out who your neighbours would be and try to imagine how they’d react to your business (hours of operations, noise, type of use)
  • Facilities - Is the site self-contained? Or would you be sharing facilities (such as heating) with other units? It’s important to understand what your responsibilities would be
  • Parking - Even if it looks like there is parking, it’s best to check. Don’t assume anything - ask if there’s any parking and if so, how it is managed
  • Last occupation: ask how long the property has been empty for. This will help your negotiation. No landlord one wants to have an empty property for a long time

DESIGNING YOUR SPACE

  • Consider: Your users and their practice - the size and layout of your space should always be designed with the user in mind
  • Consider: Health & Safety and Building Regulations - these legal requirements cover a number of important elements including location of, and number of, fire exits (we cover these in our separate Building Regulations How-To Guide)

PREPARING YOUR BUSINESS PLAN

  • What is the asking rental price and how much can you afford to pay?
  • Is there any VAT and any additional costs such as service charges?
  • What is the length of the contract (meanwhile, short, medium or long) and is there any break clause?
  • How many units can you set up onsite?
  • Is there a demand in the area and what is the average asking price?
  • Who are your target audience and how much can they afford?
  • How much is the initial investment and what finish does your target user require?
  • How much are business rates and can you either re-evaluate the site to self-contained units or apply for any other discount (as a charity or Community Interest Company)?
  • Can you apply for empty business rate relief for the refurbishment period or has it been already used? - What is your budget (weekly, monthly, yearly) for maintenance works, such as fire systems?

SEEKING FUNDING

  • There are lots of available sources of funding but there’s no ‘one-size-fits-all’ which works for everyone - so consider ones which are right for you. They include local and governmental business support, setup funds and loans, banks, private investment and even your friends or family. Speak to your bank as the first stage about business loans and check start-up or small company funds or loans.

DRAFTING YOUR HEADS OF TERMS AND CONTRACTS

  • Type of contract - Is it a licence or a lease? Be sure to get legal advice as the distinction between the two is a crucial one, and can have significant implications for any business owning or occupying commercial premises
  • Length of lease - It’s crucial to know the length of your lease
  • Break clause - Is there a break clause in the contract? If so, is it mutual, tenant or landlord only?
  • Rent offered - You should agree your rent and consider whether there are any conditions you want to incorporate e.g. ‘step rent’ - predetermined increases in rental payments allowing you to start with a lower rent for the initial years to help your cash flow and only pay full price later, or ‘Turnover rent’ -  when a tenant pays a percentage of their turnover rather than a fixed fee - is also an option for retail spaces
  • Deposit -  The amount depends on the landlord / occupier risk. This can be negotiated and reimbursed after certain criteria have been met by the occupier 
  • Guarantees - Personal, Asset or Third Parties. It might be requested especially if your business is new but it would mean that you are personally liable for any breach, so try to avoid it if possible or agree for it to be removed after a number of years
  • Service Charges - Some might say this is non-negotiable but you can demand to cap it as a certain level
  • Rent free - The rent-free period would usually be based on the level of your investment required for the premises. It will most likely never be equal to the full amount, but you can always try and negotiate
  • Rent-Review - Be mindful of wording of such clauses as it can suggest future increases without any caps
  • Responsibilities - Whether a Full Repairing and Insuring lease (FRI) or the landlord continues to maintain and insure a certain part of the building. This will have implications on your liabilities to maintain the building so consider carefully
  • Subject to Planning (or not) - Check if the site requires any planning to fit with your proposed use
  • Termination Notice Period - Check how long the required notice period is
  • Contribution / Repairs - Is the landlord required to repair any area or provide contribution for the lessee to conduct the works especially structural part of the building e.g. the roof?
  • Reinstatement / Dilapidations - Consider the ‘yielding up’ provision in the lease - do you need to return the premises in ‘no worse than existing condition, subject to a schedule of condition’ or return refurbished? Do you need to remove the partitions you built? Remember to budget for this as well when you do your business plan.

NEGOTIATING CONTRACTS

  • Schedule of condition - this document will protect you so do spend time on preparing it
  • Contracted out declaration - this is one to discuss with your solicitor so that you fully understand it
  • Licence to alter - vital for your agreed partitions/plans
  • Deposit - things can move quickly after contracts are signed so make sure you have your deposit ready- Builders/contractors - If you require builders or contractors, it’s sensible to have them lined up and ready to go

BEFORE YOU SIGN

  • Your solicitor has gone through the contract and it’s ready to sign. Before you put pen to paper, we’d advise one final visit to the site to ensure it has not changed significantly since you last saw it. Take a proper look around and check everything from leaking and disrepair, to squatting. It is also a good idea to speak to your local council and neighbourhood to introduce yourself.

FITTING OUT THE SPACE

  • Take meter readings and contact suppliers to avoid out-of-contract rates
  • Order materials needed for the fit-out
  • Create your own fit-out schedule/checklist 
  • Organise waste removal
  • Notify neighbours of potential noise (if needed)
  • Get Building Regulations approval (if needed) see more at our Building Regulation checklist (link out)
  • Notify the council business rate department and apply for ‘empty rate relief’

MARKETING YOUR SPACE

  • Branding and design - you might not need extensive branding/design but you’ll need to look professional. Some agencies offer start-ups special rates to do initial branding and design
  • Social Media - search on social media, e.g. local creatives Facebook groups, for where your users/audience might be
  • Gumtree - listing sites like Gumtree have millions of users and could be a good place to start
  • Open viewing days - consider whether you want to open up the space to potential users 
  • Councils creative newsletters - most councils will have either physical or digital newsletters that they send out to local creatives or interest groups

OPENING AND OPERATIONS

  • Maintenance - Set up contracts with statutory maintenance contractors
  • Viewings - Continue to arrange viewings for prospective users, or facilitate second/third viewings for users who have shown interest already. It could feel time-consuming but the space itself is the biggest selling point.
  • Contracts - Draft contracts for those who will be using the space
  • Moving in - Agree move-in dates