Empty rates

Something to keep in mind if you are embarking on a negotiation with a landlord for vacant offices or industrial space. 

The cost to the landlord of holding that space empty included a service charge which he is probably having to pay out of his own resources and more significantly, he is paying 'empty rates' to the local authority.  On very modest offices this can easily amount to £10.00 per sq ft.  On more elaborate accommodation it could be double that.

So even if the landlord lets it to you for £0.00 per sq ft, it improves his cashflow and if he is paying interest to a lender, it will make things much easier for that relationship.  Getting rent can be looked on at one level, as a bit of a bonus.

So don’t accept what the landlord’s agent is telling you is possible.  Make your own mind up or get some advice.