Buying a residential property can be a daunting process, yet purchasing a commercial property can heighten any apprehensions, especially for first-time commercial property buyers. Although it can seem complicated, it can also be very exciting. The best way to ensure your experience is as problem-free as possible is to conduct extensive research.

Here are a few points you should consider before purchasing your commercial property.


If this is your first commercial property purchase, it may seem scary, but always try to think ahead to the future. Do the premises have the potential for your business to expand? Where will your business be in two, five or ten years? Will your original premises remain large enough?

On the other hand, try not to buy more space than you need. Rent is expensive nowadays more than ever; if your business does not require the extra space, consider somewhere else. Alternatively, depending on the type of building, perhaps consider subletting.

Only in a best-case scenario might you find the perfect premises: perfect size, condition, and location. Often, you will have to make compromises to find what is best for your business.

Meanwhile, it would be sensible to consider some health and safety regulations that might prevent you from buying certain premises. For example, some regulations require employees to have enough space at work, so be sure to think about furniture layout and other factors that could interfere with employment law.

Should I lease or buy a commercial property?

Your business and financial situation should determine whether you rent or buy your business premises. For a small or new company, the best option is to opt for a short-term lease. Short-term leases allow you to know whether the space is suitable for you or whether there is too much or too little space. Ideally, you would negotiate a tenant’s right to break the lease before the term end date to be sure.

Long-term leases provide more security; however, always check if there are flexible options for subletting or development.

An older, more established, or larger company might wish to consider buying its premises. Often this is because the business is established in the local area, so they do not want to lose brand recognition by moving.

As an established business, there are benefits to buying a property which include:

  • Cost-effectiveness
  • Increased control over management and maintenance
  • Freedom to adapt the property
  • Ability to lease to a third party.


As with residential property, buying and renting commercial property brings very different experiences, both in complexity and financing.

It can be very easy to overspend when purchasing commercial premises; however, in the longer term, and depending on the type of company, it can be more beneficial.

Mortgage lenders ask for 20% of the property’s value, which could be unachievable for some, whilst landlords often require an upfront deposit, monthly rent, insurance rent, and service charges. Therefore, renting requires less capital to be invested but can be more costly in the long run.

There is no one correct answer to the approach one business should take when deciding whether to rent or buy premises. Again, be sure to research and weigh up each option’s advantages and possible disadvantages.

What is the best location for my commercial premises?

There is a trade-off between ideal location and financial viability. In the modern world, it is less essential for many businesses to be located in the centre of a busy high street – thanks to eCommerce and other technological advancements.

However, it is still paramount that your premises are located conveniently for employees, clients and suppliers alongside good transport links. That way, you are more likely to increase your customer base, benefit from solid logistics and provide a reason for employee retention.

It is best if you aim to review the location of your premises as often as possible so as to ensure that you are benefiting from all of the above.

Commercial Property Solicitors Blackheath

When you have decided on the route for your commercial property, get in touch with Beverley Morris & Co. commercial property solicitors in Blackheath Village, London.

Call us on 020 8852 4433 or email