The main factor when deciding on commercial premises to rent is obviously location. Most businesses want a property close to their main customer base and suitable for their current and possibly future needs. Location also impacts on transport links - a priority for many companies.

But what next?

At Pall Mall, we find that lease length is another major consideration, and can be a crucial detail on whether or not a deal can be reached. In recent years, we have adapted to the market and have many properties across the UK that are available on flexible rents.

Here are 5 reasons why flexible leases could benefit your business:

Improved Cash Flow

Let's face it; for start-up companies, entering into a 3-5 year lease can be a daunting prospect. Withno accurate predictions of future trade, committing to a long-lease length could literally send you bankrupt. Much better to take a progressive attitude and rent for shorter periods. This approach gives you more cash to play with when you need it most.

No Break Clauses

Long leases often have break clauses inserted into the contract. This means that if you break the contract by vacating the premises and not paying rent, you will be liable to pay the estate agent financial compensation. Flexible leases do not have this problem. Shorter, initial lease periods withan option to renew are a much more sensible option, and do not have the risk of financial penalties.

Ability To Adapt

Depending on the nature of your business, you may quickly decide that you need larger or smaller premises. This is a growing issue, particularly for online retailers. They soon discover that they need more storage space and therefore require larger warehouses. A flexible lease arrangement gives you the ability to adapt to any market changes, without having to 'make-do', and limit your company's growth.

Move In Quicker

Short term leases are usually faster to set up and less complex than a longer contract. This means you can move into the premises quicker - ideal if you need space fast. No lengthy negotiations or back and forth amendments between solicitors. Flexible rents are an excellent option for agile businesses that want more control over their immediate future.

Entering A New Market

There may come a time when an established company wants to enter a new market. Where to base this new business foray is a very important factor to consider. Do you try and create space in your current premises and risk disrupting your already established business, or do you look for a new property to accommodate it?

Renting new premises on a flexible lease gives you the ability to try your new ideas out, without any impact on existing trade. If it works - great, if it doesn't, you have not committed to a lengthy, financially prohibitive contract.

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Pall Mall Estates have a wide range of low cost commercial properties across the UK.

Take a look at our available spaces here or get in touch with our experienced team here.

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