Commercial property
Shops, offices, industrial units and other non-residential property let to businesses.
In plain English
Businesses rent commercial property on longer leases, often paying for repairs and insurance themselves. Yields can be higher than housing, but empty periods can be long and the tenant's business health matters a lot.
Switch to professional for underwriting detail.
Capital requirements
Typically 30–40% deposit plus SDLT at non-residential rates and fees.
Cost assumptions to budget for
- Non-residential SDLT
- Legal and survey (often higher)
- Void costs: business rates and service charges on empty units
- Letting fees and incentives
Potential returns
Net initial yield after purchase costs; see the calculator.
Main risks
- Tenant default and long voids
- Structural change (retail, offices)
- Empty rates liability
- Obsolescence and energy standards
Legal checks
- Lease review (alienation, break clauses, repair)
- Landlord and Tenant Act 1954 security of tenure
Regulatory checks
- Non-domestic MEES
- VAT option to tax
- Business rates
Is it suitable?
Often suits
- Investors seeking longer leases with professional advice
Usually not suitable for
- Investors without a void buffer
A general guide, not a personal recommendation. Suitability depends on your finances, experience and attitude to risk.
Step-by-step
- Review lease and tenant accounts.
- Check VAT status and rates.
- Run the commercial yield calculator.
- Commission a commercial survey and legal due diligence.
Financial calculations
Commercial / mixed-use yield
- ⚠ Mixed-use purchases also use non-residential SDLT rates.
Every figure above comes from the assumptions you entered. This is not a valuation, mortgage offer or financial advice.
Create a free account to save calculations.
Official sources
- Opting to tax land and buildings (VAT Notice 742A)
- Business rates (GOV.UK)
- Stamp Duty Land Tax (GOV.UK)
Last reviewed 31 Oct 2026. Rules change — check the source before relying on this guide.
Not advice