As most business property is leased you will have far more choice compared with buying freehold, which has the downside of tying up your cash. An average lease will run from 3 to 10 years and so provides the stable base needed. However, you need to watch out for the following:
- Bad landlords – some fail to keep premises clean and maintained and worse still, can fail to keep their side of the lease agreement. Try to get references from past tenants.
- Rent reviews – make sure you fully understand the rent review in your lease contract. This allows your landlord to increase your monthly rental cost.
- Fees and time – buying a lease can be expensive and time consuming legal advice is essential.
Why not draw up a property specification to save time. This should include details of everything you are looking for, noting which items are purely desirable. This may typically look like this:
- Location – specify the areas you would like to search within
- Tenure type – Lease or freehold
- Length of lease required
- Size of premises (ie 9,000 to 10,000 sq ft) and maximum price per square foot
- List specific requirement - good height, intention to obtain D2 planning etc
SPI Global Play can put you in touch with companies who may be able to help you find your ideal premises. Just ask!
The size of your building will also depend on your budget. Please click here to ask us for an estimate.
STEP 4. At the same time as looking for your building you will be looking at the means to fund your new play centre. Click here for more information on suggested funding methods and what you'll need to secure it.