Whether you are an existing retailer looking to relocate, or if you’re looking to open your first shop then choosing the correct property is likely to be an integral part in the success of any venture. Picking the correct building and location is even more important in a vibrant and diverse city like London. Therefore, if you are thinking of renting a retail unit in London, there are a few things you need to think about first. The city is home to some of the busiest shopping streets in the world, but competition can be fierce, and rents high, so you need to a hundred percent certain that the space you are considering fully meets all of your needs. So, before you put pen to paper on that lease here are a few things you need to take into consideration.
Know Your Budget
Before you even start looking at retail units in London, you need to know your budget. How much can you afford to spend on rent each month? Don’t forget every pound you pay over your maximum budget will immediately come off your bottom line. Our advice would be to have maximum, medium and high-end budgets, as that will allow you to do a proper comparison between the different types of retail properties on the market. It is possible you may find premises that are perfectly suitable at the lower end of your budget. Think about whether what is on offer in the more expensive properties is worth the extra rent, for example will it bring in more custom. Don’t forget to factor in other costs associated with running a business, such as utility bills, business rates, and insurance. These can add up quickly, so make sure you have a realistic idea of how much it will cost to run your business from a London retail unit. Once you know this, you can start searching for units that fall within your price range.
How Much Space Do You Need
Before you start looking for retail units to rent in London, you need to have a clear idea of how much space you need. Think about the type of products or services you’ll be selling and whether you’ll need room for storage, stock displays, or customer seating. There is absolutely no point paying for larger premises if some of it is going to be left unused as that will just be a drain on your resources. Once you have a good idea of the size and layout of the space you need, you can start searching for that ideal space for your new venture.
Location, Location, Location
Now while we might be stealing this title from that well known channel 4 property show it is extremely relevant. Location probably plays a more vital part in retail than other type of commercial enterprise. If you find a property with low rental it may well be due to the fact that there is hardly any passing trade, which unless you are a specialist retailer that customers actively seek out is going to negatively impact your business. While low rental properties may seem an attractive proposition, if they are not in the correct location you just won’t get the custom you require to make your business a success. Also, worth considering is the proximity of public transport links. London is renowned for its public transport so take advantage of this by trying to locate your business close to tube and bus links. It is also worth checking out the availability of parking close to the unit as this will also be a good selling point for any retail business.
Negotiating Your Lease
One thing to be aware of is that the base rent for commercial properties is very rarely set in stone. There is usually a bit of flexibility when it comes to the rent for commercial properties as landlords are often prepared to offer incentives to get a retail property occupied. We would always advise that you take a tough stance during negotiations remember anything you can save goes straight to your profit margin. If you cannot come to an agreement that suits you it is better to walk away, remember things have to just right for you. Always check out how frequent rent reviews are and your obligations when it comes to service charges. You also need to be fully aware of what your responsibilities are when it comes to the maintenance of the property. For example if a problem arises in your drains whose responsibility is it to contact a drainage company in London, is it you or is all repair work included in your rent. Have all these details outlined clearly in your agreement as the last thing you need is to be hit with unexpected costs.
Be Fully Informed
It is vital that you fully research not only the property concerned but the area surrounding it. Especially if it is in a part of the city you are not particularly familiar with. Make a point of visiting at different times of day to get a feel for the neighbourhood and the people. There is much more at stake when you are setting up a retail business than if you are looking for somewhere to live. So, remember being as well-informed as possible is the best way to make your business a success.
Hopefully the information contained in this article will help if you are looking for a suitable retail unit in the capital, whatever type of business it is remembering research is key. So, be prepared, organised and informed that way your business will have the best chance of success.