Why Commercial Property Investors Should Check Fire Safety Compliance Before Buying

Fire safety can affect far more than simply whether a building has extinguishers

When purchasing commercial property, investors routinely investigate leases, rents, surveys, planning, title and tenant covenant.

But another area deserves serious attention:

fire safety.

A commercial building may appear perfectly functional while still containing fire-safety issues that require substantial expenditure or restrict how the premises can be occupied.

For investors, the implications can extend beyond compliance. Fire safety can influence refurbishment costs, insurance, tenant demand, subdivision plans and future asset-management opportunities.

At Citrus Commercial Circle, we believe investors across Bury, North Manchester and the wider North West should understand the fire-safety position of a commercial property before committing significant capital.

Who is responsible for fire safety?

Commercial property responsibility can depend on how a building is occupied and managed.

Under the Regulatory Reform (Fire Safety) Order 2005, duties are placed on the relevant responsible person, which may include an employer or someone who has control of premises.

In a commercial investment context, responsibilities can potentially involve landlords, tenants, employers and managing parties depending on the circumstances.

Official guidance is available through GOV.UK – Fire Safety in the Workplace.

Investors should obtain competent professional advice for the individual building.

Start with the fire risk assessment

One of the first documents an investor may want to investigate is the property’s current fire risk assessment.

A suitable and sufficient fire risk assessment should identify hazards and the measures required to manage risk.

Depending on the premises, this may consider matters such as:

• Escape routes
• Fire detection
• Emergency lighting
• Fire doors
• Signage
• Fire-fighting equipment
• Management procedures

The existence of a document alone does not necessarily mean every recommended action has been completed.

Check outstanding actions

Imagine purchasing a commercial investment with a recent fire risk assessment.

At first glance, that sounds reassuring.

But the report contains a list of recommended works that have never been completed.

Those works could potentially become an immediate asset-management issue after completion.

Investors should therefore ask:

What actions were identified?

and:

Have they actually been completed?

Multi-let buildings can be more complicated

Fire safety becomes particularly important in multi-let commercial buildings.

Different businesses may occupy individual units while sharing:

• Corridors
• Staircases
• Entrances
• Fire exits
• External escape routes

Responsibilities need to be understood clearly.

An issue within a common area can potentially affect several occupiers at once.

Industrial estates have different risks from offices

Fire-safety requirements and risks can vary considerably depending on the property and activities taking place.

An industrial tenant might operate:

• Machinery
• Welding equipment
• Battery charging
• Vehicle repair
• Manufacturing processes

A conventional office may have a very different risk profile.

Investors should understand what businesses are actually doing within their premises rather than assessing every commercial building in the same way.

Tenant use matters

A unit originally let for storage might gradually evolve into a more intensive operation.

The occupier could introduce:

• Machinery
• Additional staff
• New materials
• Production equipment

This can change the building’s risk profile.

Good property management includes understanding how premises are being used and whether that remains consistent with lease, planning, insurance and safety requirements.

Escape routes must remain usable

Commercial buildings need appropriate means of escape.

For investors, practical problems can arise where escape routes pass through:

• Shared areas
• Yards
• Neighbouring units

An escape door is of little value if the route beyond it is regularly blocked by parked vehicles or stored materials.

This is particularly relevant on busy industrial estates.

Parking can become a fire-safety issue

Parking is often treated purely as an estate-management problem.

But badly positioned vehicles can potentially interfere with:

• Emergency access
• Fire exits
• Escape routes

Landlords should therefore consider parking arrangements as part of wider site safety.

Clear estate rules can help prevent operational problems.

Fire doors are important

Fire doors can help limit the spread of fire and smoke.

Issues can arise where they are:

• Damaged
• Wedged open
• Poorly fitted
• Altered

Investors purchasing older commercial buildings should understand the condition of relevant fire-safety features.

Professional inspection may be required.

Compartmentation can matter during refurbishment

Commercial buildings may rely on fire-resisting walls, floors and other construction to limit fire spread.

Alterations over many years can compromise these arrangements.

For example, previous occupiers may have installed:

• Cabling
• Pipework
• Ducting

through fire-resisting construction.

If penetrations have not been appropriately dealt with, remedial works may be required.

Subdivision can change fire-safety requirements

We have previously discussed the potential benefits of dividing larger commercial properties into smaller units.

But subdivision is not simply a case of installing partition walls.

Creating additional units can affect:

• Escape
• Compartmentation
• Fire detection
• Emergency lighting
• Access

Fire safety should therefore be incorporated into the design from the beginning.

Mezzanine floors need careful consideration

Mezzanines are common within industrial property.

They can provide valuable additional accommodation without increasing the building footprint.

However, mezzanine installations can affect:

• Escape distances
• Occupancy
• Fire protection
• Building regulations

Investors acquiring units containing existing mezzanines should establish whether appropriate approvals and documentation are available.

Building Regulations are part of the picture

Certain construction and alteration works may need to comply with Building Regulations.

Fire safety is covered within the regulatory framework.

Information can be found through GOV.UK – Building Regulations Approved Document B.

Commercial investors undertaking refurbishment or subdivision should use suitably competent designers and contractors.

Emergency lighting should not be overlooked

If normal power fails during an emergency, appropriate emergency lighting can help occupants safely leave the building.

Older commercial premises may contain systems that require:

• Testing
• Maintenance
• Upgrading

Investors should consider ongoing maintenance requirements as well as initial installation.

Fire alarm systems vary considerably

Not every commercial building requires an identical fire alarm arrangement.

The appropriate system depends on factors such as:

• Property size
• Layout
• Occupation
• Risk

A large multi-let building may have very different requirements from a small self-contained warehouse.

Specialist advice is essential.

Warehouses create particular challenges

Large warehouses can contain:

• High racking
• Significant stock
• Packaging materials
• Vehicles
• Charging equipment

The way the premises are occupied can materially affect fire risk.

Investors should understand whether the building’s safety arrangements remain suitable for the actual use.

Lithium-ion batteries are an emerging consideration

Modern businesses increasingly use lithium-ion batteries within:

• Electric vehicles
• Tools
• Equipment
• Material-handling machinery
• Energy-storage systems

Battery charging and storage can create specific fire risks.

The Health and Safety Executive provides workplace safety guidance, while specialist fire-safety advice should be obtained for particular operations.

This is likely to become increasingly relevant to industrial landlords.

EV charging needs proper installation

Commercial landlords may wish to install electric vehicle charging infrastructure.

This can improve the attractiveness of an estate, but installations should be properly designed and professionally completed.

Investors should consider:

• Electrical capacity
• Charger positioning
• Vehicle parking
• Fire-safety implications

Infrastructure improvements should always be coordinated rather than considered independently.

Insurers may have additional requirements

An insurer may impose conditions relating to fire risk.

These might concern matters such as:

• Alarms
• Sprinklers
• Storage
• Particular business activities

Investors should understand the insurance requirements applying to the building.

A tenant introducing a new activity without notifying the appropriate parties could potentially create insurance complications.

Sprinklers can influence industrial property

Some larger warehouses and higher-risk operations may benefit from or require sprinkler systems depending on the circumstances.

Where systems exist, investors should establish:

• Maintenance arrangements
• Inspection records
• Water supply
• System condition

Existing infrastructure should not simply be assumed to be operational.

Fire safety can influence tenant selection

A property may physically accommodate a particular business but require substantial safety upgrades before occupation.

For example, a proposed tenant might introduce a more intensive activity than the previous occupier.

Landlords should therefore assess:

Can the building safely and legally accommodate this use?

before finalising a letting.

Fit-out works need coordination

Commercial tenants frequently undertake their own fit-out.

Works might include:

• Offices
• Partitioning
• Mezzanines
• Electrical installations
• Machinery

Landlords should have appropriate procedures for reviewing proposed alterations.

Poorly coordinated fit-outs can affect fire-safety arrangements.

Unauthorised alterations can create hidden problems

A tenant may make seemingly minor changes without appreciating their wider implications.

For example:

• Blocking a doorway
• Changing partitions
• Adding storage
• Altering escape routes

Regular property inspections can help landlords identify potential issues.

Documentation has investment value

Well-managed commercial properties should maintain appropriate records.

Depending on the building, these might include:

• Fire risk assessments
• Alarm testing
• Emergency-lighting records
• Maintenance certificates
• Relevant inspection documentation

Good records can make acquisition due diligence easier and provide evidence of active property management.

Missing records deserve investigation

A lack of paperwork does not automatically mean a building is unsafe.

But it can create uncertainty.

An incoming investor may need to commission new inspections and establish the position from scratch.

That additional work should be considered within the acquisition timetable and budget.

Fire-safety expenditure can affect purchase pricing

Suppose an investor identifies £75,000 of necessary fire-safety works during due diligence.

That information can materially influence the acquisition appraisal.

The investor can consider:

• Purchase price
• Refurbishment budget
• Future rent
• Timing

Finding out before completion gives the purchaser options.

Finding out afterwards simply creates a bill.

Compliance works can create improvement opportunities

Necessary fire-safety works can sometimes be combined with wider refurbishment.

For example, an investor might coordinate:

• New lighting
• Office refurbishment
• Fire alarm upgrades
• Electrical improvements
• Decoration

Completing works together may reduce disruption and help reposition the property.

Don’t rely solely on the current tenant

An investor should not assume that because a business has occupied the building for twenty years, every aspect of the property automatically meets current requirements.

Buildings evolve.

Regulations evolve.

Occupier activities evolve.

Appropriate professional due diligence remains necessary.

Vacant buildings have their own fire risks

Fire safety doesn’t disappear when a tenant leaves.

Vacant commercial properties may face risks including:

• Arson
• Unauthorised access
• Deliberate damage

Investors should maintain appropriate security and insurance arrangements during void periods.

Property management plays a major role

Good fire safety is not simply a one-time certificate.

It involves ongoing management.

Depending on the building, this may include:

• Inspections
• Testing
• Maintenance
• Tenant communication
• Keeping routes clear

A well-managed commercial estate is generally easier to operate, insure and let.

North Manchester has a wide range of older commercial buildings

Bury and North Manchester contain substantial amounts of established industrial and commercial stock.

Many older buildings remain excellent premises.

Age itself is not necessarily the issue.

The important question is whether the building has been appropriately maintained and adapted as requirements have changed.

Older property with good management can remain highly competitive.

Citrus Commercial Circle’s market insight

At Citrus Commercial Circle, we encourage investors to look beyond the obvious features when inspecting commercial property.

Don’t simply ask:

How much rent does it produce?

Also ask:

Is the building properly set up for the businesses occupying it?

Fire safety, electrical capacity, access, planning and building condition all contribute to whether an asset can continue producing sustainable income.

Final thoughts

Fire safety is a fundamental part of commercial property ownership and occupation.

For investors, understanding the current position before acquisition can help identify necessary expenditure, management responsibilities and potential restrictions on future use.

Fire risk assessments, professional inspections and good documentation should form part of a wider due-diligence process where appropriate.

At Citrus Commercial Circle, we are proud to help landlords and investors across Bury and North Manchester identify commercial property opportunities with the practical fundamentals needed to support long-term occupation and investment performance.

Based in Bury. Active across North Manchester. Always on your side.

Call us today: 0161 383 1806

Email: info@citruscommercialcircle.co.uk

Visit: citruscommercialcircle.co.uk

Let’s unlock the full potential together.

Citrus Commercial Circle – Where standards meet success.