What to do before taking out a commercial lease
Explore how we can help businesses with their commercial lease requirements.
Contact our teamSecuring the right commercial lease is a critical decision that can significantly impact the future success of your business.
Whether you’re opening a new office, retail store, or other commercial space, the terms of your lease can shape everything from your costs to your operational flexibility. Before signing any agreement, it’s important to take several key steps to protect your interests and ensure you’re making the right decision for your business.
Take your time
The process of finding the right commercial property can be time-consuming and sometimes stressful. The temptation to rush into a decision just to get things moving can be strong, but it’s essential to resist that urge. Take your time to find the ideal location for your business. Choosing the right property is crucial—whether it’s for accessibility, visibility, or space—and making the wrong decision could impact your long-term success.
Even when you think you’ve found the perfect space, it’s worth taking an extra day or two to reflect before signing anything. A good landlord will understand the importance of this decision. Moore Barlow’s expert legal team can assist you in ensuring the lease terms work for your business before you commit.
Richard Hughes
Partner | Commercial Property, Real Estate, Real Estate Finance
Understand that business rentals are different
Commercial property rentals operate under very different rules compared to residential rentals. For one, commercial tenants have fewer protections than residential tenants. Also, while residential rents can include basic costs like utilities, commercial landlords often add extra charges such as security, maintenance, repairs or waste removal. These additional costs, often referred to as service charge, can significantly impact your monthly expenses and may increase over time. It’s important to fully understand the costs associated with your commercial lease to avoid surprises down the line. Moore Barlow can help you navigate these complexities and ensure that you are not blindsided by unexpected costs.
Negotiate
Never accept the first terms offered by the landlord. Negotiation is essential when it comes to commercial leases, and it’s critical to be willing to walk away if the terms don’t suit your needs. Whether it’s negotiating rent, securing a longer rent-free period, or getting other concessions such as covering the cost of utilities, negotiating from a position of strength will help you secure better terms. Having legal backing from us at Moore Barlow during these negotiations can provide leverage, ensuring that you don’t agree to unfavourable terms.
Do your research
Take the time to explore multiple properties, and don’t be afraid to consider locations you may not have initially thought about. It’s easy to fall in love with a particular property or location, but the perfect space may be in an unexpected area. Familiarise yourself with the local real estate market to ensure you know what a fair rental rate looks like in the area, so you can make an informed decision. Moore Barlow can provide valuable insights and advice on the legal aspects of different lease agreements to help you make the best choice.
Meet our team of commercial property solicitors
Jo Farr
Partner | Commercial Property, Real Estate, Land Development, Real Estate Finance
Richard Hughes
Partner | Commercial Property, Real Estate, Real Estate Finance
Julian Parkes
Partner | Commercial Property, Real Estate, Landed Estates and Farming
Nellie van der Lande
Senior Associate | Commercial Property, Real Estate Finance, Rural Services
Callum Leary
Senior Associate | Commercial Property, Real Estate, Real Estate Finance
Sam Ho
Senior Associate | Commercial Property, Real Estate, Real Estate Finance
Sharon Mays
Senior Associate | Commercial Property, Real Estate, Land Development, Real Estate Finance
Nicola Donnelly
Associate | Real Estate, Plot Sales, Residential Property
Fiona Hampton
Chartered Legal Executive | Commercial Property, Land Development, Plot Sales
Helen Archibald
Consultant | Commercial Property, Real Estate, Land Development
Janice Taylor
Conveyancing Executive | Real Estate, Plot Sales, Residential Property
Consult a lawyer before signing
A commercial lease is a legally binding contract and signing the wrong one can be costly for your business. Before you agree to any lease terms, have the lease thoroughly reviewed by a lawyer who specialises in commercial property law. Your lawyer will be able to flag any potential issues, ensure the terms are fair, and confirm that your interests are fully protected. While landlords may present the lease as non-negotiable, Moore Barlow can help make sure the agreement is more balanced and that there are no hidden pitfalls.
Get a professional assessment
Before finalising your lease, engage a surveyor to assess the site. Ensure that utilities such as water, electricity, and heating are sufficient for your business needs, and get a clear picture of the current site conditions. Any structural or utility issues can greatly affect your construction costs or the day-to-day operation of your business, so it’s worth investing in a professional assessment upfront.
Secure exclusivity for your business
In certain industries, exclusivity can be crucial to your success. Request exclusivity in your lease agreement to prevent the landlord from renting space in the same building or complex to a direct competitor. Whether you’re a restaurant, retailer, or service provider, having exclusivity in your location can help you attract more customers and avoid unnecessary competition.
Ask for the first right of refusal
Including a “first right of refusal” (also known as a pre-emption right) clause in your lease means that if the landlord ever decides to sell the building or the unit you’re renting, you get the first option to buy it. This can be beneficial if you see long-term potential in the location and want to protect your future business interests.
Commercial property & development brochure
Explore our commercial property and development legal services, helping businesses to prosper.
Understand the importance of lease terms
Long-term lease stability is essential for growing businesses. Many commercial tenants aim for terms like “10 and 10” or “10, 5, and 5,” meaning a 10-year lease followed by a renewal option for either another 10 years or two 5-year periods. Securing longer lease terms ensures that you’ll be able to make the most of any investments in leasehold improvements and provides your business with a stable foundation. This is especially important if your business relies on building a long-term presence in the area. Moore Barlow can help you negotiate the best terms to ensure security for your business.
What should be included in a commercial lease agreement in the UK?
A UK commercial lease agreement should detail the agreed rent, service charges, and rent review provisions, along with insurance terms. It should also cover obligations and rights regarding repairs, maintenance, and any restrictions on subletting or assigning the property to another party.
Client case study – Major Group
“We’ve worked with Moore Barlow over several years, they’ve been very attentive to our needs. One of the things we appreciate the most is speed – they’ve been great at that”
Aman Singh, Major Group
Do I need a solicitor for a commercial lease?
While not legally required, using a solicitor is strongly recommended for commercial leases due to the financial stakes and long-term commitments involved. A solicitor ensures proper checks, surveys, and property title investigations are completed, protecting your interests throughout the lease process.
Following these guidelines and carefully considering your options will put you in a better position to secure a commercial lease that supports your business’s long-term growth and success. With the right preparation, negotiation, and legal advice, you can avoid common pitfalls and find the perfect location for your business.
