Light industrial units - cost?

Pennywise

There's another fundamental point that I can't see being raised.

Planning permission/Business Use

Industrial units tend not to have planning permission to retail from them. They usually have planning permission for wholesale, storage or warehouse use.

In our area, the council have imposed a blanket ban on retailing from our main industrial estate. Obviously, established premises with historic permission can continue, but no new businesses will be granted permission.

The result has been a slump in rental values for the units without permission to retail. Those units with such permission now command a much higher rent as they're now in greater demand, but with that will follow increases in business and water rates which are linked to rental values!

As others have said, look on Rightmove, but also look at commercial estate agents in your area as industrial units aren't always put on RM. But, don't just look at rental values per square footage, also check on the permitted use in case your area also has weird planning/permittance rules for retail on industrial estates.

COOLTRIKERCHICK

Pennywise wrote: »

There's another fundamental point that I can't see being raised.

Planning permission/Business Use

Industrial units tend not to have planning permission to retail from them. They usually have planning permission for wholesale, storage or warehouse use.

In our area, the council have imposed a blanket ban on retailing from our main industrial estate. Obviously, established premises with historic permission can continue, but no new businesses will be granted permission.

The result has been a slump in rental values for the units without permission to retail. Those units with such permission now command a much higher rent as they're now in greater demand, but with that will follow increases in business and water rates which are linked to rental values!

As others have said, look on Rightmove, but also look at commercial estate agents in your area as industrial units aren't always put on RM. But, don't just look at rental values per square footage, also check on the permitted use in case your area also has weird planning/permittance rules for retail on industrial estates.

industrial units are allowed to have a 'trade counter' which can not take more than 30% of the business over all income, the other way around this issue is to only be open to 'members' only, this is how the likes of Matalan got around this in the early stages of industrial estates etc

earthstorm

COOLTRIKERCHICK wrote: »

industrial units are allowed to have a 'trade counter'

yes TRADE Counter as selling to trade is wholesale and NOT retail.

you would need change of use if you want to sell to consumers 100% as a retail outlet

Pennywise

COOLTRIKERCHICK wrote: »

industrial units are allowed to have a 'trade counter' which can not take more than 30% of the business over all income

Yes, and our council are strongly enforcing the "trade" part of that statement and coming down heavily on anyone selling direct to the public with the necessary planning consent.

earthstorm

Pennywise wrote: »

Yes, and our council are strongly enforcing the "trade" part of that statement and coming down heavily on anyone selling direct to the public with the necessary planning consent.

yes, but you will find most trade counters will sell to consumers.

i often use PTS plumbing and screwfix which are both trade counters

lincroft1710

earthstorm wrote: »

i often use PTS plumbing and screwfix which are both trade counters

Screwfix have sold to private individuals for many years, in-store, via catalogue and online.

earthstorm

lincroft1710 wrote: »

Screwfix have sold to private individuals for many years, in-store, via catalogue and online.

Yes but their stores are in trading estates are clearly marked as trade counters.

JTF are a large national wholesaler, but welcome everyone to their warehouses ( traders or consumers)

you will find more and more trade counters/wholesalers will now sell direct to consumers.

lincroft1710

earthstorm wrote: »

Yes but their stores are in trading estates are clearly marked as trade counters.

JTF are a large national wholesaler, but welcome everyone to their warehouses ( traders or consumers)

you will find more and more trade counters/wholesalers will now sell direct to consumers.

Very few companies can now afford to turn away business. At one time many trade customers didn't like private individuals buying stuff, where they bought and tried to put pressure on "trade only" companies to sell only to trade.

Over 40 years ago, there was a "trade only" motor factors in my home town. An undergraduate friend wanted some bits for his car, so he put on a pair of greasy overalls, walked in and got served without any problem.

earthstorm

lincroft1710 wrote: »

Very few companies can now afford to turn away business.

I agree.

I know when i set up an account with a wholesalers 10 years ago i had to show my business bank account details, 3 receipts in business name from 3 other wholesalers, my passport and utility bill. now the same wholesalers will allow anyone in as long as they have cash or a valid payment card.

Personally i dont like it as consumers know what the items are costing retailers to buy, but their again i can go into Poundland and get the some items cheaper than what i can get at wholesalers

colino

Have a word with your local authority, the planning department often have a portfolio of not only their properties, but are aware and in contact with commercial owners on their patch. LAs often also give good incentives for start-ups, much better than commercial landlords, simply because their elected members want votes, not necessarily profits!
Don't dismiss the difficulty of trading issues though. An organisation I was working with steamed ahead with a revamped industrial estate launch, used one of the first tenants, a Bathrooms company, as the media launch (yes, Chief Exec cutting a ribbon in front of nearly dressed model in shower cubicle). Many red faces when complaints flooded in as it is an industrial estate and their glass fronted, open to the public, retail units were NOT allowed.