Small industrial unit of 500 sq ft. How much rent?

[flanajb]

I put an advert in a local paper for a small 50-70 sqm workshop and mentioned price be below £500/month (was rather stupid to mention money). Anyhow, I went to look at one today on a small industrial park in a very rural area. Not near a village or town. The chap was very nice, but when I asked him how much / month he replies £500 per/month including electric (funny that). Given the unit is only 500 sq ft I came away thinking that he was trying to rip me off?

Am I correct that most industrial premises are around £4 / sq ft for rent?

If not, I would really appreciate some pointers regarding what you would expect to pay for such a unit.

ps - this is not a new unit and will require a little tlc to improve the insulation.


Many thanks

 

[artie]

I put an advert in a local paper for a small 50-70 sqm workshop and mentioned price be below £500/month (was rather stupid to mention money). Anyhow, I went to look at one today on a small industrial park in a very rural area. Not near a village or town. The chap was very nice, but when I asked him how much / month he replies £500 per/month including electric (funny that). Given the unit is only 500 sq ft I came away thinking that he was trying to rip me off?

Am I correct that most industrial premises are around £4 / sq ft for rent?

If not, I would really appreciate some pointers regarding what you would expect to pay for such a unit.

ps - this is not a new unit and will require a little tlc to improve the insulation.


Many thanks

"including electric" Could potentially be worth an awful lot.

 

[Woodchips2]

Suggest have a look on RightMove. Here is one example in Dorset http://www.rightmove.co.uk/commercial-p ... miumA=true and there are others on the site around the same price.

Regards Keith

 

[ardenwoodcraft]

Have you tried your local council?

Ours, Redditch Borough Council, has small starter / enterprise units in converted factory premises and the rent can sometimes include heating and lighting, and depending on the floor area of the unit, may also be exempted from business rates.

A friend of mine has one of 200 square feet in converted factory premises near me and there are also units of 400 square feet available in the same premises for under £500 per month including heating and lighting. He says some of the tenants have been in these units for over 20 years and they are perfect for what those businesses need them for.

I know that not all councils may have these types of premises but I thought it might be worth a mention in case it was an option you may have overlooked.

Hope this helps,
Regards,
Dave.

 

[RobinBHM]

The price sounds about in the ballpark. Its difficult to know as rent will vary a great deal geographically.

Landlords may add on maintenance charge, % for management, insurance etc etc -

Does that include rates?

You can always haggle - it doesnt matter what price youve put in your advert, its what you thinks its worth.

Dont rush into making a decision about premises.

I would try and find some rural industrial parks and go and chat to one of the tenants and find out if there are any units coming up.

Avoid business parks in towns unless you want to pay a fortune

 

[flanajb]

As far as I know North Dorset District Council have no provisions / units for start up businesses.

From what Keith and Artie have both said it does not sound like too bad a deal. I got the impression that he might be up for negotiation if I take it for 6 months and pay up front too for those 6 months.

 

[clk230]

He may feel 6 months is to short term alot of landlords prefer a decent tenant long term .

 

[stuartpaul]

Given that Yeovil is a 'pooh pile' and property prices are generally quite a lot cheaper in Somerset you may be getting a reasonable deal.

The electric included could be really useful if you're going to use much. Does the landlord know what you intend to do and whether you'll be using much?

What other (if any) charges?

 

[flanajb]

He has already said a 6 month let is fine, so no issues there.

That is all the charges included. So it's £500 all in.

 

[Cordy]

You should get a copy of the proposed lease; then try to work out what your overheads will really be

Water, service charge, council rates, insurance; they all add up
Remember that there is no such thing as a 'Standard Lease'
In general I believe that the law favours the land-lord in Industrial/Commercial property leases

As a landlord I have been renting out such properties for many many years with hardly a hiccup

Good luck
Cordy

 

[Matt@]

500pcm for 633 sq ft is extortinate its nearly office rates. Electric is sod all unless you have machines on all day especially 3 phase or have welders. Yes £4 is very possible but thats plus electric which need not be much anyway unless the landlord has rigged the coin meter.. You need to think outside the box and connect with people that would rent out but dont want to advertise. Farmers are usually the best option.....

edit
re. rates, you would get rates relief and pay nil if at a rateable prop.

 

[flanajb]

I am now having a rethink about this. I have reevaluated things and concluded that £500/month is way too much as a starting rent. Going to keep working in the garage until I have a viable business that is making some money.

 

[Cordy]

Good idea :lol:
=D>