A Guide to Sharing Industrial Spaces

The option of sharing an industrial space can offer small business owners in the UK an affordable and flexible solution to their operational needs. This guide outlines the benefits, challenges and key considerations for a successful shared workspace arrangement.

Benefits of Sharing Industrial Spaces

Sharing a space allows businesses to split rent, utilities and maintenance costs, reducing the financial burden on tenants. Proximity to other companies can also lead to collaboration, resource sharing and introductions to new clients.

Joint lease terms provide greater flexibility, making it easier to scale operations up or down as needed. Pooling resources often enables access to facilities or locations that might otherwise be unattainable.

Key Considerations

Assess your requirements, including square footage, utilities, storage and specific amenities. Consider the noise levels, access hours and parking facilities at locations you visit. Consider partnering with businesses whose operations complement rather than conflict with yours. For example, avoid partnering with a noisy manufacturer if your operations require a quieter environment.

Draft a written agreement outlining rent splits, utility payments, maintenance responsibilities and terms for exiting the arrangement. Using a solicitor is recommended to ensure the contract is legally binding and fair for all parties. It’s equally important to check you have adequate insurance coverage, including public liability and contents insurance.

Verify that the property complies with commercial property use rules and has the appropriate permissions for your operations. Check fire safety measures and health and safety regulations too.

Finding Shared Industrial Spaces

Websites like Gumtree, SpareRoom and Realla can assist you in your search for available spaces. Consider attending local business events or joining trade associations to connect with fellow small business owners interested in sharing a space.

If you would like a helping hand, reach out to local commercial property estate agents for leads on shared spaces or properties suitable for subletting. If subletting, remember to make sure the agreement is above board.

Managing the Space

Establish regular check-ins with your co-tenants to discuss any issues or changes. Open communication helps prevent misunderstandings and conflicts. Use a rota or agreement to divide responsibilities for cleaning, maintenance and utilities fairly.

Install security systems, such as CCTV cameras, access controls, and alarms, to protect your premises and your company’s assets.

Leaving a Shared Agreement

If you decide to part ways with your spacemates, adhere to the notice period specified in your agreement. Provide written notice to avoid disputes and settle outstanding rent or utility payments.

Conduct a joint inspection to document the property’s condition and address any damages. Promptly remove your equipment and materials to ensure a smooth transition to your next location.

Closing Up

Sharing industrial spaces is a practical solution for small businesses looking to save costs and collaborate with others. Your company can thrive in a harmonious shared workspace by carefully choosing compatible partners, establishing clear agreements and maintaining effective communication.

Remember to seek professional advice when drafting agreements and ensure compliance with all the relevant UK commercial building regulations.

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