Business Rates and Empty Property: Problem or Opportunity?

Episode 95 – Business Rates and Empty Property: Problem or Opportunity? Would business rates put you off buying an empty commercial property?

For many investors — particularly those moving from residential into commercial property — the thought of owning a vacant building with no rent coming in AND business rates to pay can be enough to make them walk away.

But should it?

Suzi Carter certainly isn't frightened of vacant commercial property. In fact, sometimes an empty property can be exactly where the opportunity lies.

The key is understanding why the property is vacant, what it could cost you while you own it and, crucially, whether you have evidence that you can solve the problem.

In this episode of The Commercial Property Podcast, Suzi explains how business rates work on empty commercial properties in England, including Empty Property Relief, the longer relief period available to qualifying industrial properties, and some of the legitimate ways business rates may be mitigated.

She also looks at the recent Court of Appeal decision on so-called "box-shifting" business rates mitigation schemes, what it could mean for owners of vacant commercial property and why changes to rates mitigation could potentially create opportunities for informed investors.

Because if other buyers become nervous about empty properties — while existing owners face increasing holding costs — could that create less competition, more motivated sellers and better buying opportunities for investors who understand the numbers?

In this episode, you'll discover: How business rates on empty commercial property actually work

Why most empty commercial properties receive an initial period of Empty Property Relief

Why qualifying industrial and warehouse properties can receive a longer rates-free period

Why buying a vacant property doesn't necessarily restart the Empty Property Relief clock