Throughout the UK, over half of all commercial property is rented or leased rather than owner-occupied. Many businesses want to change or expand their space but may be unsure of their options. Throughout this blog we will be taking a deep dive into this area and applying it to our most popular space-enabling product, the mezzanine floor.
So let’s look at the scenario a little closer. You’re renting, your business is thriving and you’re growing at an outstanding pace. You don’t want to relocate or traditionally expand due to downtime and extortionate costs. This leaves you with one viable option, installing a mezzanine floor. The only catch? You’re unsure if you’re allowed to install one.
The Short Answer
The good news is that in most cases, installing a mezzanine floor in a rented unit is entirely possible. This does not mean it’s a green light in every circumstance, but it’s certainly not the roadblock most businesses think it will be. It makes the process a little longer as it involves a few extra steps, namely reviewing your lease and getting your landlord on board. With the right installer, you’ll have support at every stage, and neither is as hard as it seems. The key is knowing where to start.
Start with Your Lease
The obvious first place to start would be your lease agreement. In most commercial leases, there should be a section that deals specifically with property alterations. A mezzanine floor is classed as a structural addition which will almost certainly fall under “alterations to property”. The key to finding which section applies is looking for the phrase ‘licence to alter’. This is formal permission from your landlord granting the tenant approval to make changes to the building. Most leases will require written consent for any structural works. Others, however, divide minor and major alterations into different categories. Another key phrase to scan for is ‘reinstatement clause’; simply put, this means you will need to put the property back to its original condition at the end of the tenancy. It’s paramount to read through all sections mentioned carefully and always consult your solicitor or property advisor first.
Talking to Your Landlord
After making yourself familiar with all the clauses which may affect your project, the next step is to speak with your landlord. Many tenants put off this conversation; however, it’s usually less daunting and more straightforward than they think. The worst answer would be a flat-out “no”; however, this isn’t often the case. Often landlords are more receptive than expected to these types of works, especially if it’s being done to the highest standards. A well-installed mezzanine floor won’t damage the floor, which is a common misconception. If anything, demonstrating to potential future tenants how the space can be effectively utilised is a benefit for the landlord.
As with most business conversations, it pays to prepare before speaking to your landlord. Know what you want to install, including a rough idea of the footprint, height, staircases and any other add-ons such as pallet gates. Be ready to share that a reputable installer will be handling the project with full building regulations approval in place.
What Happens at the End of Your Tenancy
It makes sense that most businesses would be concerned about what happens to the installation when your tenancy is complete. The main issue you will have here is if you have a reinstatement clause, which I mentioned above. The good news is that unlike most building alterations, mezzanine floors are not permanent. One of the main benefits when compared to traditional expansion is that a steel mezzanine is a bolted-together structure. This means that much like Lego or, more appropriately, Meccano, it can be disassembled when needed. If required, it can be transported to a new location to keep hold of that investment. This makes it a genuinely flexible asset, not a fixed cost tied to one building. If reinstatement is required under your lease, the floor can be removed cleanly and the building returned to its original state without lasting impact to the fabric of the unit.
Things to Think About Before You Commit
As with any capital investment, it’s worth taking a step back to consider a few practical points before you sign off on the project. The most important is your remaining lease length versus the payback period on the investment. Commercial leases for SMEs in the UK typically run anywhere from three to ten years. If you’ve got two years left on your lease with no renewal in sight, it’s worth modelling whether the investment makes sense over that timeframe or whether it’s better timed to coincide with a renewal.
You’ll also want to clarify who legally owns the structure once installed and whether any reinstatement costs need to be factored into your budget. None of these are reasons not to proceed; they’re simply the questions that lead to a well-planned project rather than a reactive one. A good mezzanine installer will help you think through all of this before a penny is spent.
Ready to Find Out If It’s Right for You?
If you’re thinking about installing a mezzanine floor in a property you’re renting, then we’re here to help. In most cases it’s as easy as knowing what you want, having the right conversations early and utilising an experienced contractor. At Premier Mezzanines, we’ve helped businesses across the South West and South Wales navigate exactly this situation. Whether you’re at the stage of wondering if it’s even possible or you’re ready to get a quote, we’re happy to talk it through. We can advise on the practicalities, help you understand what to look for in your lease, and make the whole process as straightforward as possible.
Contact us touch today for a free site survey or budget quotation. Let’s see what we can do with the space you already have.