BLB’s Head of Commercial Property, Caroline Entwistle, considers the benefits of leasing industrial premises out of town.
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The benefits of leasing industrial premises out of town
Historically, reliable transport for goods and raw materials and a ready workforce on the doorstep were prime considerations when siting your factory. That’s why we tend to picture an urban setting when considering industrial premises. But there’s no reason to discount taking a lease of an out-of-town industrial unit these days.
Indeed, you will discover a greater choice of premises by broadening your search – and other advantages too.
Typically, lower demand means the rent per square foot is less out of town. However, potential landlords may also be more willing to consider other financial incentives, such as a rent-free period or a reverse premium. In addition, they may also be willing to make a capital investment, making changes to the property so that it’s perfect for you.
Enterprise Zones are designated areas encouraging business growth and new jobs. The incentives for businesses locating or relocating to these areas include:
- rate discounts and other tax breaks;
- superfast broadband; and
- other government support.
Unfortunately, there’s a tendency to assume that Enterprise Zones are limited to urban areas. In reality, you will find many in out-of-town locations.
If you need sizeable industrial premises, you are less likely to find them in a built-up area. And widening your search out of town increases the chance of finding something suitable. For example, many ‘new’ commercial units on the rural-urban fringe or even out in the countryside are repurposed agricultural buildings.
Ease of access for delivery of raw materials and onward distribution of your finished product is very likely essential. And HGVs and other commercial vehicles are less likely to encounter congestion out of town. Also, don’t forget the increasing restrictions on commercial vehicles in urban areas, including the prevalence of costly vehicle emission zones.
In addition, out-of-town premises have implications for employees. While public transport links will likely be fewer, parking availability is often the offset. And lower congestion means less reason for employees to arrive late for work!