Commercial Property for Semiconductor and Advanced Manufacturing Businesses

A semiconductor or advanced-manufacturing business cannot simply occupy any available industrial unit. The property itself may be critical to the operation.

Manufacturing facilities can require substantial power capacity, specialist ventilation, temperature and humidity controls, clean-room facilities, loading arrangements, specialist equipment and appropriate planning permissions.

This makes property due diligence particularly important.

Before acquiring or leasing premises, businesses should consider whether the permitted use covers the proposed activities, whether sufficient electricity and other utilities are available, and whether alterations and installation of specialist equipment will be permitted.

Lease negotiations should also address matters such as:

• alterations and fit-out;

• installation and removal of specialist machinery;

• repairing obligations;

• service charge exposure;

• energy and utility requirements;

• assignment and subletting;

• break clauses and renewal rights; and

• reinstatement obligations at the end of the lease.

  
  

The rapidly developing AI and technology economy is also increasing demand for specialised infrastructure. Planning, power availability and infrastructure constraints can materially affect the suitability and value of premises. 

For a business investing heavily in specialised manufacturing equipment, the property contract needs to work alongside the operational strategy.

Our commercial property lawyers advise businesses on acquisitions, leases, development, property due diligence and the legal issues affecting specialist manufacturing premises.