What is Commercial Property?

A commercial property is a non residential building, or piece of land, used for business. This can include:

  • Shops
  • Offices
  • Forest
  • Agricultural space
  • Six or more residential properties bought in a single transaction.

So, a commercial property is one of the above, owned by a person or persons, rented out, or used by themselves for business purposes.

Investing in Commercial Property

Many people invest in commercial property in order to diversify their investment portfolios. Commercial properties can be rented out to businesses on lease, and can ensure a regular income.

Renting a commercial property

For most businesses it is not financially viable to buy a property outright. Businesses usually rent a property. Renting a commercial property is a complicated procedure and a specialist solicitor should be instructed to guide you through this procedure whether you are a tenant or landlord.

Things to consider when renting a commercial property

When looking to rent a property it is important that you find the right location for your business. If you are looking to open a cafe, for instance, you would ideally want a space in an area that has a lot of people passing through. If your business is office based, then you may want a space on the edge of town where it is easier for staff to get to.

It is also important that you find a suitable property. If you are opening a restaurant it may be more cost effective if the property you rent has already been used for that purpose, otherwise significant investment in the property will be needed, and the landlord would have to agree to the change of use.

Another thing to consider is rent and business rates. Rent is going to be one of your biggest outlays, and business rates can add 40% on top of this.

Further charges could be:

  • Solicitors fees
  • VAT
  • Stamp Duty Land Tax


There are many factors to consider when renting this type of property, and trying to navigate these waters on your own is a difficult business, which is why Kaiser solicitors are here to help.