Define your Property Requirements

These requirements will form the basis of all property search work undertaken by others on behalf of the firm, so it important to make them as accurate and realistic as possible.

In particular, take into account the following issues:

Location

Location is clearly pivotal when it comes to operating your business effectively. For most businesses, the main considerations will include:

• Access to markets and customers
• Access for staff
• Local amenities and services
• Availability of labour and skills
• Property availability and costs
• Prestige/profile
• Planning restrictions
• Financial assistance availability
• Public transport connections and wider transport infrastructure
• Access for raw materials and finished product
• Telecommunications and utilities provision
• Quality of life issues
• Location of competitors
• Access to suppliers and partners
• Neighbouring businesses and their market

What are the most important location factors for the business? Some compromises may be inevitable, but it is essential to get the location right. There may be other factors to consider, such as new development taking place or new infrastructure projects. Advice can be obtained on potential locations from Gateway to London and your Chartered Surveyor. They will be best placed to suggest suitable matches, advising on the options available and accessing the necessary information.

Specification

Every building is different and it's unlikely that one building will suit every potential tenant. Take into consideration things such as suspended ceilings, raised floors, car parking requirements, telecommunications provision, the need for extra power supplies, or any fit-out options that could be unique and essential.

Ask a few searching questions:

• Is there enough workspace now and for potential future expansion?
• Does the current layout meet my needs and, if not, can it be altered easily?
• Does the building provide all the facilities that I need including meeting rooms, kitchen areas, and raised floors/suspended ceilings for IT cables and wiring?
• Are the services to the building up-to-date and appropriate for my needs?
• Do I need to refurbish the building in any way and how does this fit with my budget?
• Does the site have planning permission for my use and would this be straightforward to obtain?
• What are the obligations of the lease?
• Can I sub-let floorspace if I want?
• Are there enough car parking spaces for my staff and customers?
• Is there disabled access to the building?
• How secure is the building?
• What does the physical condition of the building say about my business, and is image important?

Give extensive thought to the type of building that suits your company's needs including its design, layout, facilities and access points. There are numerous points to consider about the building and one size will not fit all. Some businesses may consider acquiring land for a Design & Build scheme to suit their particular requirements, particularly if a building that that meets a specific need is not available.

Property Options

Business premises are usually taken on either a freehold, leasehold or licensed title basis. Serviced office space is a further option which is particularly well suited to small businesses, or established businesses that are venturing into new or unfamiliar markets.

Deciding on a preferred choice of acquisition is not always straightforward and there are good reasons to support each of the options. It's important to understand where your business is likely to be in 5 years time and the business strategy.

Freehold - Purchasing a property outright and acquiring its freehold can be a good investment for an established business with greater reserves to commit to this. Subject to any restrictions in the title deeds and planning permission, freeholders will usually be free to improve the property as they see fit.

Buying a property gives an added level of control, since alterations can be made on site to cope with expansion. If space is required for plant and machinery equipment, these costs could be difficult to fund if there are constant moves of premises. Buying will avoid the need to factor-in rent reviews, lease renewals or negotiations regarding dilapidation costs. On the other hand, an allowance will need to be made to cover maintenance costs and insurance.

Leasehold - Considered one of the best options for established businesses, leasehold properties are normally let for between three and 25 years, offering a stable base for that time. Subject to obtaining the landlord's written consent, it is usually possible to make alterations to the premises. Buying a long lease is another option and some properties are available on leases so long that they are known as "virtual freeholds".

Leasing is more flexible than buying, particularly when it comes to short-term leasing. If a business is fairly small and is growing, leasing space or even taking a license is probably best. This approach will open up more options and should simplify an upgrade to larger facilities or a different type of property in a couple of years.

License - An ‘easy in, easy out' license is normally arranged with very minimal legal work. Licenses are considered ideal for start up and micro-businesses because they offer greater flexibility, such as taking on more or less space at short notice, and lower outlay costs. Insurance, rates and maintenance can be arranged by the owner and will often be included in the price.

Serviced Offices - Sometimes known as Business Centres, these are especially popular with young and fast-growing new businesses. They offer a variety of shared services for example: receptionists, Internet connections, postal service and photocopying facilities. They can be ideal for entrepreneurs who need to move in quickly but still retain flexibility, while avoiding the need for a longer-term commitment.

Finances

What makes most financial sense overall?  What can the company afford when factoring in costs like business rates, insurance, service charges and utilities? Consider the firm's financial position carefully and decide on a budget for the project.