Finding new premises for growing businesses

As businesses grow, they often outgrow their initial premises. Early-stage locations may not meet the evolving needs, prompting the desire for a custom-built space.

Transitioning to a customised solution requires effort and coordination with industry professionals. Here, Peter Searle - a non-executive director for a property investment company and a fractional project manager dealing with new build and refurbishment of residential and commercial properties, as well as one of our speakers - provides a brief overview of the process and key terminology.

The overall plan

Building projects generally follow the Royal Institute of British Architects (RIBA) Plan of Work, which breaks down into four main actions:

1. Stages 0-3: Feasibility—high-level planning, costing, and scoping

2. Stage 3: External approval (e.g., planning permission, legal)

3. Stage 4: Detailed technical design

4. Stages 5-7: Construction and bringing the space into use

Throughout the process, referencing RIBA stages is a useful way to track progress.

Stages 0-3: Feasibility

These stages focus on setting project objectives, budgeting, and searching for a suitable property. Locate in Kent is a useful resource for finding commercial properties in the area. Once a decision is made to buy, lease, or rent, the next step is determining how much customisation is needed.

Buildings are generally offered in four conditions:

1. Shell and Core: Basic structure with core areas like toilets and lifts

2. CAT A: Includes ceiling, lighting, and floors but no carpets

3. CAT A+: Adds carpets, partitions, and IT infrastructure

4. CAT B: Fully equipped with furniture and fixtures

   
   

The degree of fit-out depends on the lease terms. Less fit-out offers more customisation but at a higher cost.

Heads of Terms (HoTs)

For leased properties, HoTs outline what alterations are permitted and potential future costs. Areas to watch include rent, service charges, utilities, car parking, and dilapidation costs (repairing damage beyond normal wear and tear). A “schedule of

conditions” should be agreed upon before moving in to avoid disputes later.

Stage 3: External Approvals

Landlord approval, often in the form of a Licence to Alter (LTA), is needed for modifications. Other approvals like planning permission and building control may also be required, depending on the project. An architect can guide these decisions.

Stage 4: Detailed Technical Design

This stage involves detailed layouts and equipment planning, coordinated through Room Data Sheets (RDS). Procurement specialists categorise responsibilities into:

• Group 1: Contractor supplies and installs

• Group 2: Client supplies, contractor installs

• Group 3: Client supplies and installs

Stages 5-7: Construction and Moving In

With thorough planning, construction and moving into the new premises should go smoothly. A “moving champion” can manage logistics, while business continuity plans ensure operations run smoothly during the transition.

If you're looking to move your business to a custom-built space, and you need help, please contact Peter on peter.searle@ba4cs.co.uk.