Step 1Find the Right Commercial Property for Rent in Derbyshire & Nottinghamshire
Focus on location, planning use, transport, and space needs before viewings.
Where should I locate my business?
Consider Local Amenities (cafes and shops for employees), parking facilities (and restrictions), delivery facilities (and restrictions), congestion charges, proximity to customers / clients / staff, kerb appeal, broadband coverage, mobile coverage, transport links (airports, trains, buses and roads).
You should thoroughly research a location, particularly if you are considering somewhere new. Familiarise yourself with similar businesses, where are they located and why?
If you are looking for a retail or leisure use, you may want a high street location with good footfall.
If you are a trade, you may seek a main road position with good access and profile.
If you are logistics, you may require good transport links. Is that 1 mile from the motorway as the crow flies or as the HGV drives?! A HGV route planner can help with this.
If you are searching for office space, you will need a location that staff can easily commute to and attracts employees.
What Planning Use Classes affect my business?
You should focus your initial search for properties with the correct Use Class or the potential for it. Ensure your business matches the property’s permitted use under The Town and Country Planning (Use Classes) Order 1987. Most high street and business park units fall under Class E (Commercial, Business and Service). This flexible class covers retail shops, offices, cafes, restaurants, professional services, gyms, medical facilities, and light industrial uses.
Permitted Development Rights for Change of use rights often allow changes without full planning permission. However, Derby City Council, Nottingham City Council, and other East Midlands authorities can apply Article 4 Directions removing these rights to protect high streets. For heavy manufacturing or distribution, target Class B2 (General Industrial) or Class B8 (Storage & Distribution).
If unsure, contact the letting agent or Local Planning Authority before viewing. Planning permission for change of use is not guaranteed, can be costly, takes time and requires landlord consent.
Calculating Space Requirements & Measurements (GIA vs NIA)
Commercial property is priced and measured adhering Royal Institution of Chartered Surveyors (RICS) professional standards. We break measurements down into two main formats:
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NIA (Net Internal Area): The usable area inside the building, excluding structural walls, corridors, stairwells, and shared amenities. This is standard for office spaces and high-street shops.
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GIA (Gross Internal Area): The total area inside the external walls, including internal pillars, toilets, and loading bays. This is standard for industrial units, workshops, and large-scale warehouses.
Commercial Space Benchmarks at a Glance:
Office Space: Budget 80 to 100 sq ft per employee (Note: UK workplace regulations require a bare minimum workspace volume of 11 cubic metres per person). Serviced offce space is oftern a lot smaller per employee due to shared ancillary accomodaiton.
Retail Shops Standard high-street boutiques typically require a minimum of 500 to 1,000 sq ft of total space to balance sales floors with storage.
Industrial Units Calculated by physical racking and equipment footprint rather than headcount. Always measure the clear internal eaves height alongside Gross Internal Area (GIA).
Future Growth: Having underutilised space is an expensive overhead, but outgrowing your lease prematurely is worse. If signing a multi-year lease, factor in an extra 15% to 20% space buffer for your projected business expansion.
Property measurements will usually be expressed in Square Meters (Sq. M) or Square Feet (Sq. Ft).
A typical double garage is approximately 11.9 Sq. M or 128 Sq Ft.
A typical football pitch is approximately 7,140 Sq. M or 76,900 Sq Ft!
Step 2Factor the Total Costs of Commercial Lettings & Rates
There are a number of different costs you are likely to incur when renting commercial property. It is important you understand what you may be liable for prior to taking on a commercial lease. Explanations to some of the costs are detailed below.
A. Value Added Tax (VAT) & Rent Payment Schedules
Commercial property prices and rents are almost always quoted exclusive of VAT. Landlords frequently "opt to tax" commercial buildings to recover their own development costs.
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The VAT Trap: If a property is registered for VAT, an additional 20% will be added to your rent and charges. If your business is not VAT-registered, you cannot reclaim this, turning it into a direct 20% increase in your overheads.
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Payment Rhythms: Commercial rent is traditionally paid quarterly in advance on the traditional English Quarter Days: March 25th, June 24th, September 29th, and December 25th. However, landlords are increasingly flexible and accepting of monthly payment structures. Note that rent payments are legally due whether or not you have received an invoice.
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Commercial Rent Deposits: Unlike the residential sector, there is no statutory tenant deposit scheme for commercial property. Your deposit is held by the landlord and usually bound by a legal Rent Deposit Deed, outlining exactly when and how the landlord can draw upon those funds.
B. Business Rates
Business Rates are a statutory tax collected by local councils based on a property’s rental value. Rates are determined by The Valuation Office Agency (VOA) and are usually revised every 5 years. The Rateable Value (RV) is not what you pay.
- The Business Rates Valuation Landscape: The Valuation Office Agency (VOA) continuously adjusts rateable values to align with shifting market rents. Under modern frameworks, business rates operate on a more nuanced five-tier multiplier system where the specific depends heavily on your property's sector (e.g., Retail, Hospitality, and Leisure vs. standard Industrial/Office use).To calculate rates payable (your business rates bill) you need to multiply the RV by the multiplier for the current tax year. Check the current multiplier on the VOA website.
- The 2026 Business Rates Revaluation took effect on 1 April 2026. Check your property’s Rateable Value on the VOA website and see if you qualify for Business Rates Relief. The most common is Small Business Rates Relief (up to 100% for RV under £12,000). You must apply for relief directly through your local billing authority (e.g., Amber Valley Borough Council, Erewash Borough Council, or Mansfield District Council). Other rates relief schemes include;
- Retail, Hospitality, and Leisure Relief: Eligible occupied businesses in these sectors can qualify for significant discounts (such as 40% off their business rates bills).
- Charitable & Non-Profit Relief: Charities and Community Amateur Sports Clubs (CASCs) can receive up to 80% mandatory relief.
- Rural Rate Relief: Businesses in designated rural areas with populations under 3,000 can get up to 100% relief if they operate the only village shop, pub, or petrol station.
- Empty Property Relief: You are generally exempt from paying rates for the first 3 months a property is empty. Extensions apply to industrial premises and listed buildings.
- Transitional Relief: Caps how much your business rates bill can increase following a property revaluation.
- Supporting Small Business Relief: Designed to cap bill increases for businesses that lost some or all of their previous small business or rural reliefs.
- Pubs and Live Music Venues Relief: Specific relief tiers apply to support traditional pubs and grassroots music venues.
Look out also for incentives and initiatives in the region, such as Business Improvement Districts (BIDs), Enterprise Zones and Local Enterprise Partnerships (LEPs).
C. Repairs and Maintenance Make sure you understand your obligations under the lease, you should set aside a monthly budget for the ongoing property maintenance costs you may be responsible for.
D. Service Charges, Utilities & Insurance Expect service charges in multi-let parks (e.g. Pride Park Derby or Nottingham Creative Quarter). This is for maintaining common areas such as unadopted roads, or landscaping. Similarly if a building is shared, the costs of maintaining the structure and common areas is usually recovered. If Service Charge is payable, we recommend understanding what is included and getting a budget for the costs. Some Landlords may agree to fix or cap the service charge as part of the negotiation prior to the lease being signed.
Unless stated otherwise you will usually be responsible for utilities and the running costs associated with the demise. The running costs will be down to your usage, so it is difficult for the Landlord or the letting agent to provide a budget. We recommend you check the Energy Performance Certificate (EPC) showing you how energy efficient the commercial property is.
E - Building Insurance is usually obtained by the landlord and recovered from the tenant. We recommend obtaining the budget for the current years Building Insurance Premium when negotiating Heads of Terms. Building Insurance is separate and does not cover your business or contents. You will need your own insurance too.
F. Professional fees We recommend you take independent third-party advice prior to agreeing heads of terms. Using a agent or surveyor such as Omeeto to advise on terms and a solicitor to advise on a lease agreement is recommended, especially if you're taking on a Full Repairing and Insuring or a longer term lease. Whilst this may feel like an added initial expense, the cost of their advice could be paid back many times over in duration of the lease..
Step 3How to negotiate a commercial lease?
Remember commercial property legislation is different to residential. If you are renting commercial space, you are entering into a commercial negotiation. We recommend commercial tenancy negotiations are done with the help of third party advisors such as an commercial property agent and a solicitor.
Key points to consider are;
A - Lease Term & Incentives The longer the term you are prepared to commit to, the more attractive your proposal is likely to be for a landlord. The term certain is only up to the first break point so a 10 year lease with a break at year 2 shall be viewed as a 2 year commitment. You can ask for rent-free periods or stepped rents to assit with move costs, fit-out or works.
B. What are the Lease Types?
- FRI (Full Repairing and Insuring): Most common – tenant handles all repairs and insurance.
- An "effective FRI" (Effective Full Repairing and Insuring) lease is a commercial property agreement where the tenant bears 100% of the building's maintenance, repair, and insurance costs, but the landlord manages the actual work and reclaims the expenses from the tenant via a service charge.
- IRI (Internal Repairing and Insuring): Tenant responsible only for internal repairs; landlord covers external structure. Better for short-term or older properties.
You should check the overall condition of the commercial property prior to agreeing terms. It is also advisable to seek up to date certification. Look out for repairs you might become liable for on signing or during the lease. It may be worth carrying out a building survey to ensure you are aware of any problems with the building before you commit to the property. A landlord may be willing to remedy some defects or offer rent incentives in lieu of works as part of the deal. Or they might agree to a schedule of condition.
C - Rent, Use and Alterations
Rent should be market-led, you should check to see how much are similar properties priced?
Rent is often calculated per Sq Ft. So, renting a 1,000 Sq. Ft property at £20,000 per annum is £20 per Sq Ft.
Rent incentives might be negotiated but remember it is all relative. The landlord holds the property as an investment. If the deal works, it works! But if a tenant seeks rent free, a reduced rent, a short lease and landlord capital expenditure etc there may be no incentive for the landlord to do the deal. Be realistic with your requests and expectations.
Commencing Rent will reflect the current use. It is important the lease covers your intended use, and potentially has some flexibility to for your future business requirements, or in the event you wish to sub let or assign the property in the future. Beware - the use will be relevant at Rent Review and a broader user clause may give the landlord more evidence for a Rent Review.
D - Rent Reviews
For decades, the "upward-only" rent review was a standard feature of UK commercial property, protecting landlords if market values dropped. The legal landscape has fundamentally changed. The English Devolution and Community Empowerment Act 2026 introduces a statutory ban on traditional upwards-only rent review (UORRs) mechanisms across England and Wales. Under the law, open-market or index-linked reviews must operate as a genuine two-way street—meaning rents can legally move down as well as up to reflect real market downturns, and tenants have a statutory right to trigger reviews. Note that a targeted retrospective rule catches any tenancy renewal arrangements executed on or after 17 March 2026.
E - Break Clause
You are not able to quit a lease unless a break clause has been agreed. Break Clauses will only be valid if the pre-agreed conditions are met. It is common for a Landlord to seek a minimum of 6 months prior written notice to a break and for all payments due under the lease to be up to date. Remember if you do not comply exactly with the break terms it may invalidate your break, even if you served the correct notice.
If you do not like the uncertainty of not knowing future rent increases, a landlord might be amenable to stepped rents – this is where the rent increases are pre-agreed and fixed. A rent review can also be index linked. It is important you agree to a review mechanism that you understand.
F - Alterations
If you wish to make some alterations to the commercial property, you may need to get consent from your Landlord first. It is always worth getting an agreement in principle to proposed works prior to entering into a lease negotiation.
G - Security of Tenure
The Landlord and Tenant Act 1954 is a key law for England and Wales that governs business tenancies. Its most important provision, Part II, grants commercial tenants "security of tenure," meaning they have the statutory right to remain in their premises and renew their lease at the end of their contractual term. The core protections are
- Automatic Renewal: Tenants are not automatically evicted when a lease ends. They can "hold over" and continue occupying the property while negotiating a new lease on essentially the same terms, subject to market rent.
- Lease Terms: If landlords and tenants cannot agree on rent or terms for the renewal, either party can apply to the courts to determine them.
When can a Landlord Oppose Renewal of a commerical lease?
A lease that is Contracted Out means there is no legal right to a new lease on expiry. It is common for the landlord to require a lease ot be contracted out because they wish to retain control over the occupation of their property. To contract out a property, a Statutory Declaration must be completed before the lease.
Some works may require Building Regulations and Planning permission.
F - Licences vs Leases
A licence is a short-term, flexible agreement with less security of tenure and fewer repairing obligations. Choose a licence for temporary or pop-up use (e.g. 6–12 months testing space) where easy exit is priority. Leases suit longer commitments.
Once you have agreed terms they would usually be recorded in a document called Heads Of Terms. This is then sent to the solicitors to draft a lease.
Step 4What are the checks before completing a lease?
You will complete the lease once the money to do the deal is in place and all parties are satisfied with the state of the commercial property for rent as well as the contract. The deal will be legally-binding once the lease is completed.
Before completing the lease it is advisable to:
- Check the EPC (Energy Performance Certificate), EICR (Electrical Installation Condition Report), gas safety, fire risk, and asbestos certificates along with service records for air conditioning and other M&E.
- Verify planning use and space needs.
- Obtain a Licence for Alterations for any changes.
- Calculate and understand the full costs including rates and service charges.
- Confirm lease length, breaks, incentives, and lease type (FRI/IRI).
- Double check the condition of the property. Most leases are FRI. If you have concerns consider requesting a Schedule of Condition to limit end-of-lease repair costs, especially on older Derbyshire and Nottinghamshire buildings.
At Omeeto, we have tried to streamline the letting process so some of our clients offer standard tenancy agreements. This means you can complete the letting process sooner because the main clauses within the standard tenancy agreements are non-negotiable.
It is essential you understand them so please remember RTFL… Read The FULL Lease and take third party advice.
If you are unsure, do not be afraid to ask. Typical questions might include;
- What is the rent? Are there any incentives such as rent free or a stepped rent?
- How and when is the rent reviewed?
- What other costs am i responsible for (such as service and maintenance charges).
- When and how are invoices paid?
- What term can i have (lease length)?
- Can i have a break clause, if so, what are the conditions?
- Am I able to assign or sublet the property (Alienation)?
- What are my responsibilities, who is responsible for property repairs?
- How much is the service charge and what services are included?
- Can the lease be renewed (1954 act protection)?
For further information please The Royal Institution of Chartered Surveyors (RICS) has provided a Code for Leasing Business Premises.
Frequently Asked Questions
How do I apply for small business rates relief in Derby or Nottingham?
Apply directly to your local council after leasing. VOA calculates the Rateable Value; the council handles relief.
What is an FRI lease?
Full Repairing and Insuring – tenant responsible for all repairs and building insurance. Critical for older properties in Nottinghamshire and Derbyshire without a Schedule of Condition.
Can I change a retail shop to an office under Class E in Derbyshire?
Yes, generally no planning permission needed within Class E, unless an Article 4 Direction applies. Check the lease permits this
Where are the best industrial units to rent in Derbyshire?
Popular areas include Infinity Park Derby, Markham Vale, and sites near M1 junctions for logistics.
Is a licence better than a lease for pop-up retail in Nottingham?
Yes, for short-term testing (under 12 months) in areas like Hockley or the Creative Quarter. Offers flexibility with lower commitments.
Golden Rule: Read The Full Lease (RTFL). Clarify everything before signing.
Need help finding commercial property to rent in Derby, Nottingham, or across the East Midlands? See our avaiable properites to let or contact OMEETO for expert local advice and viewings.