Should Your Business Stay, Shrink, or Move? How to Decide in 2026

Commercial property is usually a business's second-largest cost after people. Yet most small businesses spend more time negotiating their phone contract than they do interrogating whether their premises are still right for them.

The current market — uncertain rates, motivated landlords, limited new supply — makes this a particularly good moment to ask the question honestly.

Start With What You Actually Need

Begin with the space requirement, not the property. How many people do you need on site regularly? What operations happen in the building? What would genuinely disrupt you if it changed? What do you wish the space did differently?

Many businesses are occupying space that was sized for a pre-pandemic headcount, a team structure that has since changed, or a layout that made sense years ago but now creates friction. Before you look at the market, be clear about what you actually need.

The Case for Staying

Staying is often underrated. The true cost of moving — not just removal costs but the disruption, the time, the fit-out spend, the new deposit — is significant. If your current premises basically work and your landlord is willing to be reasonable at renewal, staying on renegotiated terms is often the most cost-effective outcome.

The question is whether you are paying the right rent for the space you are getting. If the answer is no — if comparable space nearby would cost less, or if your space has deteriorated while your rent has not — that is the moment to negotiate hard at renewal or look seriously at alternatives.

The Case for Downsizing

If your headcount has reduced or your operations have become more efficient, you may be paying for more space than you use. In that situation, continuing in the same premises is simply subsidising empty square footage.

Downsizing options include: renegotiating to a smaller unit in the same building or from the same landlord; assigning or subletting part of your space (subject to lease terms and landlord consent); or moving to a smaller premises at lease break or renewal.

Subletting — taking a space of your own and letting part of it to another occupier — can also be a way to offset occupancy costs if your lease permits it and you have genuinely excess space.

The Case for Moving

The strongest argument for moving is that your current premises are holding the business back. The second strongest is that the all-in cost — rent, rates, service charge, utilities — is materially higher than equivalent space you could occupy elsewhere.

In the current market, secondary locations and older stock can offer significant value to businesses that do not need Grade A specification. A well-located unit with a motivated landlord and a flexible lease structure may serve your business better than an expensive unit you have outgrown the rationale for.

Running the Numbers

Before you decide, model the full cost of each option over three and five years:

• Current premises: rent, rates, service charge, utilities, rent review assumptions
• Downsized or renegotiated: same structure on revised terms
• New premises: as above, plus one-off moving and fit-out costs, less any landlord contribution

Include the opportunity cost of management time. A complex relocation that takes six months of your attention is worth quantifying, even approximately.

Testing the Market

If you are unsure whether your current premises represent value, the quickest way to find out is to post a requirement and see what comes back. RE:match lets you do exactly that — post the brief, let landlords and agents respond, and use the responses as market intelligence even if you ultimately decide to stay.

Post your requirement on RE:match — it takes a few minutes and costs nothing. Landlords and agents with matching space respond directly to your brief at rematch.co.uk.

FAQ: Stay, Shrink or Move?

What does it typically cost to move commercial premises? Removal costs, fit-out (even modest), new deposit, professional fees, business disruption, and management time. For a small business, moving is rarely cheap — which is why renegotiating in the current market can be the right first move.

Can I sublet part of my commercial premises? Subject to your lease terms and landlord consent, subletting part of your space is often possible. The lease will usually require the landlord to approve the sub-tenant. Some leases prohibit subletting entirely — check before you proceed.

What is an assignment? An assignment transfers your lease to a new tenant. You effectively hand over your obligations under the lease to someone else. The new tenant takes on the remaining term, rent, and other obligations. Landlord consent is usually required and you may remain liable if the assignee defaults, depending on your lease.

How do I know if I am paying above-market rent? A chartered surveyor can advise on comparable rental evidence for similar premises in your area. You can also search publicly available property listings to get a sense of what comparable space is currently being marketed at.