Guide to renting industrial units

When looking at your lease options, it is important to discuss with your potential landlord how long you will be expected to sign up for. Check whether a break option can be selected, as this could give you more flexibility to better suit your needs.

At Indurent, we offer leases from 3 years to 5 years but can do longer leases if required – learn more about our Smart Lease option.

Once you’ve considered the length of your lease, discuss the repairs and maintenance you will be responsible for – taking on a new space will mean taking on some new responsibilities. The two most common lease types are Fully Repairing and Insuring (FRI) and Internal Repairing and Insuring (IRI). Under an IRI lease, you are responsible for the internal repair and maintenance of the building (often including windows and doors), while with an FRI lease, you are responsible for both the internal and external of the property.

There is normally a service or maintenance charge within every commercial lease, and it is not always clear how much it will cost you. Service charges cover the repair and maintenance of the common areas. The amount you will pay is unlikely to be fixed and is usually a proportion of an estate budget set annually.

If you are leasing with us, we charge a Fixed Maintenance Charge on our IRI leases. This charge covers the maintenance of common areas and the external aspects of your unit. This will allow you to forecast your costs throughout the lease term, with a typical annual increase of 3% for this charge. At Indurent, we prioritise transparency and strive to provide clear information about all the charges you may encounter – you can find detailed information about our maintenance charges onsite for each unit. If you have any further questions or need more details, please don’t hesitate to reach out to us.

You can find out what is being covered by the Landlord and Tenant Act 1954.

While some landlords may supply utilities like gas, electricity, and water, it is not a given, and it can be frustrating to move into a new place yet be incapable of running your business. Double-checking which utilities are included before making any commitments is always a good idea.

Looking for new space for your business is an exciting process, and you would want to get the keys as soon as possible. However, confirm with your landlord the date you can move in to minimise any disruption to your business. At Indurent, depending on when the unit is available, you can complete the whole process and move in from 1 week after the initial enquiry.

You should have a clear idea of when and how you have access to your unit. However, this should be clarified when viewing the property, as some sites restrict operating hours. If you are leasing with Indurent, our units typically have 24-hour access.

You should already know how much space you require for your business. However, it is important to confirm whether an external yard/car parking space is included. Spaces can be demised (specific spaces will be highlighted within your lease) or allocated (spaces will be provided at the landlord’s discretion). Upon negotiating terms, make sure you confirm your requirements for internal space. Most of our units have designated parking areas and communal yards, making it an ideal space to operate your business.

The most important thing to consider is that you can afford the rent and other monthly costs. Firstly, you need to find out the cost of renting the industrial unit and make sure it fits in your budget. Secondly, ensure there are no hidden fees or costs that you weren’t aware of, such as maintenance charges. If you are looking to rent your space for the longer term, discuss with your new landlord whether a rent increase is likely in the future.

If you are renting with Indurent, there will be no hidden fees throughout your lease, we offer an all-inclusive lease that covers maintenance charges and insurance.

Ensure you know the total monthly cost you will incur before renting a unit. At Indurent, we offer a range of additional extras, including insurance and dilapidations cover, and we can also calculate your total outlay before signing your lease. This figure can be explicitly written into your lease. This means you can sign the lease in full transparency of all costs and plan accordingly.

Don’t forget to consider the ratio of office to industrial space you require, as offices can be expensive to fit retrospectively. We have various unit sizes that are flexible for different business needs, whether for industrial use, commercial use, storage, manufacturing, or warehouse purposes. You can choose your unit size preference when browsing our available units.

If you’ve got very specific measurements and requirements in mind, you could consider build to suit warehouses as an option. If this is something you’re interested in, please get in contact via our online form or give us a call on 0800 122 3330.

Your business will likely change over time, so you need to consider how long you can commit to the building. Longer lease commitments often result in lower rents, so think about the maximum time you can commit to get the best possible deal. At Indurent, we offer a lease term of 3 to 5 years with a simple T&Cs – find out more about our Smart Lease option.

Industrial buildings vary in prominence, height, shape, and many other factors that can attract higher or lower rents. For example, if you plan to install racks, a tall building will be much better value as you only pay for the area used (not the height). An odd-shaped building might be cheaper to rent but may still work well for your business. At Indurent, we offer various sizes of industrial units, making it a flexible space to meet varied business needs – browse our available spaces.

Selecting the appropriate location for your business is an important decision that can have a significant impact on its success. Whether you are starting a new business or relocating an existing one, the location you choose can affect the number of customers you attract, the efficiency of your operations, and your overall profitability. As a result, it’s important to understand the key factors to consider when selecting a business location to make an informed decision.

Some businesses require additional floor loading or extra power capacity for heavy machinery. Others may require cranes for moving goods or high security to keep expensive stock safe. Another might require special planning or other approvals. These factors may significantly reduce the number of buildings available, but being upfront about them may save time.

It’s important to consider things like how many doors you’ll need, where you are going to park your cars, where you will unload deliveries, are there restricted hours for access, what about noise and smell (i.e. if you are in a residential area), or even whether there is a low bridge which may hinder large HGV deliveries. You should also think about when you are likely to have most of your vehicle movements and arrange a viewing for this time of day to check out local traffic conditions.

When do you need to move in? Some buildings are available immediately, but others may need work done first, and some may need to be built based on your specification. Plan and notify the agent or landlord of your timescales. Allow plenty of time to sort out the legal documentation and secure necessary consents. If you leave everything too late, you will find yourself in a weak negotiating position.

Most landlords will require a rent deposit. Often this is equivalent to 3-6 months of rent and will be payable at the start of the lease along with the first month or quarter’s rent.

The Government charges all commercial tenants business rates on properties they rent (think of it as Council Tax for commercial property). They are typically around 50% of the rent charged.

You can find a full list of rateable values on the Government website. If your rateable value is less than £15,000 per year, you may be eligible for small business rates relief or may not be liable for paying rates at all, so it’s worth bearing this in mind.

Most landlords charge VAT for all goods and services, including rent and service charge payments. If you’re unable to get a refund for the VAT, you should consider this as an extra cost. Even if you can reclaim VAT, it’s important to note that there might be a delay in receiving the refund, leading to a temporary cashflow shortfall.

Where properties have common parts, such as service yards, landscaping or security, which are the benefit of all tenants, it is common for landlords to charge a service or maintenance charge as a contribution towards their upkeep and maintenance. The structure of the charges can vary, but typically, they are either fixed or variable, with the latter meaning that the charge can differ from year to year. Find out more about maintenance charges.

The landlord will almost always insure the building on your behalf and recharge the cost to you. However, you will also need to take out your insurance policies to cover things such as contents and public liability. Learn more about commercial property insurance.

Depending upon what your lease says, you may be liable for internal and external repairs of your building during the term of your lease. In the worst-case scenario, this may include repairs for damage or deterioration which occurred before you moved in. Make sure you understand what you will be liable for to avoid unexpected bills.

At the end of your lease, you are usually required to return the unit ‘in good and substantial repair and condition’. This usually means no worse than when you moved in, but depending upon the condition of the building when you moved in, it can mean putting it into a better condition than when you took the lease. Some landlords offer a Schedule of Conditions to help reduce this liability, while others (like Indurent) offer leases which exclude dilapidations at the end of the lease. Read our guide to dilapidations for more information.

Unless your landlord lets you know otherwise, you are likely to need to source your own gas, electricity, water and waste supplies. This works much like it does at home, so it’s worth getting quotes in advance. It’s also important to consider long-term solutions to ensure your business is energy efficient. We have a handy guide on ways to save energy in your industrial unit.

When fitting out your premises, there are several things that attract tax relief through capital allowances, including heating, lighting, electrics, security, IT, carpets, furniture, racking, mezzanines, shelving, machinery, cranes and trade-related installations. The savings can be substantial, so it’s worth taking advice to see where you can save by checking out the Government website, or our guide on capital allowances.

Leases are often lengthy legal documents, which means that legal fees can add up unexpectedly if you’re not ready for them. You might also need the services of a building surveyor to assess the property or an engineer to assist with your renovation plans. It’s important to keep these potential expenses in mind and plan accordingly.

You can easily browse online to find an industrial unit that suits your business needs -there are plenty of useful websites that list various available business spaces. At Indurent, we offer various types of units in prime locations across the UK, covering various use cases like industrial, warehousing, storage, and small units – start by browsing our available units.

Most commercial estate agents list their available properties on their websites. Different agents will dominate different areas, so it’s often best to take a drive around the area you want to locate your business and see which local agency has the most boards up. Most agents are paid by the landlord. Hence, while they can be a useful free resource for market information, it’s important to remember that they might not be impartial.

It’s important to see a few different properties to get some perspective on what is available. It will also give you an opportunity to quiz the owner or letting agent on some of the finer details, and get a feel for what kind of landlord they might be. Take lots of photos to help remember the important things like what utilities are available, or for future space planning and fit-out.

There is often a difference between the quoting rent and the actual rent that can be agreed upon. Ask for a proposal you can consider and make sure it covers all the key cost areas. It’s a good idea to request a proposal that you can carefully review and ensure includes all the important cost factors. This will help you understand the complete picture before making a decision.

How your prospective landlord behaves leading up to the letting can be a good guide to your future relationship with them. Are they responsive? Is the building well looked after? Do they speak to you directly or always communicate via a third party? A bad leasing experience can be an early warning sign for a troubled future relationship. It’s always worth speaking to other tenants at the property to see what they think of the landlord or the buildings.

You will need to agree with your landlord on several key aspects as part of a lease. Key ones to consider include:

• How long is the lease?
• Does the lease include any break options?
• What is the notice period to terminate the lease?
• Am I liable for external repairs and maintenance?
• What does the service/maintenance charge include?
• How much has it been in previous years?
• What restrictions are there on sub-lettings, assignments, alterations, use or access?
• In what condition will I need to return the property at the end of the lease?
• Is my lease inside or outside the protections of the Landlord & Tenant Act 1954? How often do I pay my rent, and will it increase in future?
• When can I move in?
• Can I store things outside my unit?
• Do I have designated parking or yard areas?
• Who pays for utilities and waste disposal?
• Will the landlord provide lighting or heating equipment?
• What work will the landlord undertake prior to me moving in?

If you are looking for an industrial unit, our Customer Engagement Manager is ready to help you with any questions. Get in touch with us by sending us a message or calling us on 0800 122 3330.

You can negotiate your rent price if the landlord offers a non-quoting rent. Non-quoting rent is when the price for renting an industrial unit is not openly advertised or publicly stated. Instead, you would need to contact the landlord or the agents directly to find out how much the rent is. This allows more privacy and flexibility in negotiations.

Additionally, an ordinary letting has many areas for negotiation besides the rent and lease terms. Depending on how good the initial deal you have struck is, there may be other areas you can improve upon. Consider seeking additional certainty on variable costs and unknowns such as market rent reviews, dilapidations or maintenance charges, or add flexibility such as lease breaks or options to renew at the lease end.

The Heads of Terms (HOTs) should include all the important information about your lease and cover everything you have agreed upon. Anything left out runs the risk of not being included in your lease, which means you can’t count on it in the future. If the landlord or their representative has made any promises or commitments before or during the lease negotiation, it’s crucial to ensure that these are clearly stated in the HOTs. Remember that verbal promises are usually not legally binding, especially if the landlord changes in the future and you end up dealing with a different person altogether.

You may or may not need a solicitor to help you, depending on the complexity of the agreement you are signing. However, always take professional advice if in doubt. Once your lease is signed you can’t change it, and a court is likely to enforce it regardless of whether you understood what you were signing up for.

​​Now is the time to dot the i’s and cross the t’s on the building. The landlord should be able to answer any reasonable queries you may have about the property, provide a copy of the Energy Performance Certificate (which, by law, must be E or higher) or provide proof that they are the owner and are able to let it to you.

At this stage you may be asked to provide information to confirm your identity, such as a passport, utility bill, or company financials.

Some landlords require the rent to be paid by direct debit or standing order. Very few landlords accept payment in cash. If you have a new business, you will need bank accounts set up and ready to go. At Indurent, your rent is paid directly to us by BACS.

Before the lease completes you will need to transfer any advance rent or rent deposits. If the landlord is not reputable, it may be better to transfer these to a lawyer registered with the Law Society to give you protection if the lease is not completed.

The lease or licence will need to be signed before you can move in, as will any other documents relating to it, such as plans, schedules of conditions, or licences for alterations. Make sure your signatories are available when you need them.

Once all the above is done, you will receive confirmation that the lease has been completed. You should then receive the keys for your new property and can get back to doing the day job!

The landlord will typically ensure that the building is insured, and so any claims relating to building insurance will be conducted through them or their broker. They should send you the new insurance policy each year when it is reviewed and will usually invoice you for the cost of this each year in advance.

If you have a service or maintenance charge, the landlord will take care of managing it and ensuring the upkeep of common areas. The charge may also cover expenses related to security systems or other specified services. If the charge is subject to change, you should receive an annual statement indicating the amount spent throughout the year. This statement will help you determine if there are any additional payments you need to make or if you are entitled to a refund. It ensures transparency and clarity regarding the service or maintenance charge.

You will usually be responsible for sourcing your own contents insurance, public liability insurance and other regulatory requirements like health & safety, asbestos, etc. You are also likely to be responsible for engaging your own utility suppliers and for paying your business rates.

Depending upon the terms of your lease you are likely to be responsible for internal maintenance and repairs and, potentially, also external maintenance and repairs, if you have a ‘Full Repairing and Insuring’ (FRI) lease. This includes anything which goes wrong from the moment you have completed your lease, such as roof leaks or boiler breakdowns. It is important that you understand the repairing obligations in your lease, so you don’t pay for items unnecessarily or get any nasty surprises later. At Indurent, we offer an all-inclusive lease which includes external maintenance, insurance, and rent. Find out more about our Smart Lease option.

To end your lease you will need to exercise a break option or leave upon lease expiry. Exercising a break option usually requires serving notice upon the landlord in a certain timeframe and may be subject to several conditions, so plan this well in advance. Typically, it is not required to give notice when leaving at the end of your lease, but it can be considerate and practical to do so. When preparing to leave, it’s important to consider your obligations for repairs and whether you’ll need to address any dilapidations with the landlord. Additionally, don’t forget to terminate any other services you may have, such as utilities, waste management, or cleaning contracts. Taking care of these details will help ensure a smooth departure process.

In such situations, it’s always best to speak to your landlord before the rent payment is due if you’re worried about making the payment. Falling to pay your rent puts you at risk of lease termination and eviction. Additionally, the landlord may involve bailiffs, which can be distressing for your staff and lead to extra charges. By discussing your concerns with the landlord, they might be willing to consider adjusting payment terms or providing a payment plan, which could alleviate short-term cash flow challenges.

Some landlords will be willing to move you into larger or smaller spaces during your lease, but others may not be able to accommodate or consider this. It’s important that your lease gives you the flexibility you need to grow your business because it would be much harder to change once it’s signed. If you have concerns about the size of your premises, it is always advisable to speak to your landlord in the first instance to see what they may be able to do to help.