Purchasing a Commercial Property as a UK Manufacturer

It is important to have a realistic business plan in place and be confident in the trajectory of your business over the upcoming years.

This should form the foundations of your search for a property, as purchasing a property that proves too small and does not accommodate your future growth can stunt your business.

On the other hand, overestimating your growth and purchasing a property you do not use at full capacity can create unnecessary costs down the line, such as expensive utility bills for space that are not being used and that your income may not be able to support.

If you find yourself in either position, it is uncertain how long it would take to sell your property and move your operations into a more suitable fit.

This could harm your business and result in you losing valuable income.

If you are in the earlier stages of your operations, you may want to consider leasing a commercial property instead to provide more flexibility.  

It is important to consider sustainability and the energy efficiency of your new property, as this can have costly implications.

An Energy Performance Certificate (EPC) rates the energy efficiency of a property using an A-G grading system.

Suppose you are aware that your specific operations use a lot of energy.

In that case, prioritising a property with a higher rating may be worth prioritising, as this will result in lower utility bills.

However, sellers know how attractive this is to buyers, meaning a higher EPC rating often comes with a higher purchase price.

It is also worth noting that the government intends that by 2030, all commercial properties will have a minimum rating of 'B', a significant jump from the current requirement of an 'E' rating.

Therefore, purchasing a property with a rating already at 'B' or above is advisable, so this is not a future concern.

Sustainability can also improve your company's reputation, a quality that is becoming increasingly attractive to potential employees; therefore, prioritising this when selecting a property may contribute to boosting your employee retention.

This could significantly impact your company, as certain areas within the manufacturing industry are facing a shortage of skilled workers.

If you believe your operations fall within these areas, this is even more reason to prioritise sustainability in your search for a property.