Negotiating on unit

[swdirect]

I have been running my business from home, but I am looking for a small unit of around 500 sq. ft so I can expand. There are quite a few empty units, but most are larger with high rents. The nearest small unit is around 500 sq. ft., but it's £750 a month plus VAT.

It’s been about 12 years since I last rented a unit, and I think that was around £360 a month for a council-owned space. I know rents have gone up since then, but £750 a month seems expensive for a small unit.

This one is a new build and one of four on the plot. They have been advertised for about eight months, but none of them are occupied yet. I’m tempted to see if they would reduce the rent, but I don’t want them to think I’m taking the mick.

What would you offer if you were in my position? I am a Ltd company but from what I have read, most landlords are going to want a personal guarantee.

 

[Chris Ashdown]

When we started we were looking for a unit about that size and found the cost to expensive, we were advised to contact the town planning department that had a long list of landlords who never advertised on there old spaces that were available. Found one of the list who was happy to take a very basic rent on a old part of a building on a licence not lease, we stayed there for about 3 years before the landlord offered us a far better unit also at reasonable costs on a lease. Units in backstreets of a town may offer far greater value if you are not looking for passing clients {Footfall)

 

[Paul Kelly ICHYB]

£750 in London, commercially, sounds OK. On the basis that co-working deskspace is probably £400 +/- a month at the lower end.

Outside of London, maybe a lot!

 

[swdirect]

£750 in London, commercially, sounds OK. On the basis that co-working deskspace is probably £400 +/- a month at the lower end.

Outside of London, maybe a lot!

I'm in N Wales, quite a few empty units within 10 miles. Most landlords seem happy to leave them empty, rather then lower the rent and get someone in.

 

[Paul Kelly ICHYB]

You will also take the rates burden away from them (whilst claiming SBRR).

 

[DoolallyTap]

500 sq. ft., but it's £750 a month plus VAT. If this is to expensive, find somewhere cheaper!!
Nothing wrong with trying to reduce the rent, but how much are you talking about, 5%,10%, doe it make that much difference??
And, yes, small units are often leased by the individual not the business, or covered by personal guarantees.

 

[JonWhite_Adler]

I have been running my business from home, but I am looking for a small unit of around 500 sq. ft so I can expand. There are quite a few empty units, but most are larger with high rents. The nearest small unit is around 500 sq. ft., but it's £750 a month plus VAT.

It’s been about 12 years since I last rented a unit, and I think that was around £360 a month for a council-owned space. I know rents have gone up since then, but £750 a month seems expensive for a small unit.

This one is a new build and one of four on the plot. They have been advertised for about eight months, but none of them are occupied yet. I’m tempted to see if they would reduce the rent, but I don’t want them to think I’m taking the mick.

What would you offer if you were in my position? I am a Ltd company but from what I have read, most landlords are going to want a personal guarantee.

Hi,
What to offer is subjet to comparison on other units in the area, (as you say) how long it has been on the market, who the landlord is (some will want the cash flow and need to let it, but a lot will have minimum targets either to justify a loan they have or want to take out on it, or they may been looking for a certain rent in order to acheive a valuaiton for a sale or loan).
Rather than agreeing a lower rent it may be easier to agree a rent free period which will reduce your overall rent in the first year. This gives the landlord the higher rent and you the reduced costs.