Choosing Commercial Premises: A Guide for UK Manufacturers


Selecting suitable commercial premises can be a crucial factor in meeting your manufacturing goals and contributing to the success of your business.

Therefore, it is important that you make the correct decision and ensure that you have given proper thought to relevant legal considerations before acquiring the premises.

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Choosing Commercial Premises A Guide for UK Manufacturers

Should I buy or lease commercial premises? 


Before searching for ideal premises, you should determine whether you wish to purchase or lease. 

If you are starting up in the manufacturing industry, leasing may be the preferred option for your immediate business goals and objectives. 

Given that capital will not be tied up into the purchase of the premises, leasing allows you to preserve capital which can be used towards other business outlays such as obtaining raw materials, obtaining specialist equipment, and scaling up the business.

Further, if you require larger premises, purchasing may not be feasible without upfront capital, and therefore, a commercial lease without a premium may be a more attractive option in securing your desired premises. 

Renting may also provide flexibility in that you may wish to lease smaller premises for an initial number of years with the plan to move to an alternate location in the future, particularly where the business growth trajectory is not certain.

Leasing may, therefore, be an easier solution to altering business sizing needs, especially if a break clause is negotiated into the lease to allow for early termination. 

Leasing, however, can be an expensive option in the long term. It can also be inflexible as certain dealings with the premises may require the landlord’s consent.

You may instead require a stable location for your business’s long-term plans, in which case, purchasing premises may be the preferred option. 

Should I buy or lease commercial premises


A key advantage of purchasing commercial premises is the stability, which ensures that you have a permanent base for your manufacturing operations.  

Having ownership of the premises also provides greater control and flexibility; for example, you will be able to carry out renovations and decorations and be in control of branding without obtaining consent from a landlord.

This may be particularly important where you require certain infrastructure and specialised equipment for your manufacturing operations and will, therefore, need control of the premises to tailor the building to your specific needs. 

However, purchasing typically entails departing with considerable upfront capital and involves a long-term commitment. 

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Choosing suitable-sized premises  

The size of your desired premises will depend on your business growth trajectory, and it is vital to consider the future needs of the business.

For example, a high growth trajectory may encourage you to invest in larger premises, which will facilitate that growth.

As a manufacturer, you may also need to consider any additional space you will need to store specialist equipment, stock and goods.

You must avoid choosing premises that are too small or too large.

If the premises are too small, your business may be hindered, but if they are too large, you may find yourself overpaying for wasted surplus space. 

If you are renting the premises, you also need to factor in the ease of terminating the lease early if the size of the premises becomes unworkable for your manufacturing needs at some point in the future.  

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Choosing suitable sized premises

Location and access considerations 

The location of your commercial premises can be vital to the success of your manufacturing operations. 

Key considerations include whether there is suitable availability of loading areas for large scale deliveries of goods and materials, and how accessible the premises are from the road for delivery lorries. 

It is important that if you anticipate receiving large scale deliveries then there is sufficient space for vehicles to manoeuvre.

You may also wish to ensure accessibility to, and proximity from, transport infrastructure such as ports. 

You may also wish to consider whether you would prefer to be located within an industrial estate or whether a business park would be more suited to your operations. 

An important factor is also accessibility to the premises for staff and the availability of both employee and client parking on site. 

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Location and access considerations

How we can assist

What may seem like ideal commercial premises may, in fact, not be the case on closer legal inspection, and the transition to new commercial premises can be a particularly complex task.

It is, therefore, important that legal considerations are dealt with when the premises are acquired. 

Our manufacturing solicitors can assist with the purchase or lease of your chosen commercial premises to ensure a smooth and stress-free transition.

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