Commercial Property for Care Operator - Finding Suitable Premises for Care Businesses

Explore commercial property for care operators, including suitable building types, planning use, CQC requirements, accessibility, refurbishment, lease terms and property management support from Fraser Bond.

Finding suitable commercial property for care operator requirements can be more complicated than finding a conventional office or retail tenant.

Care operators can require premises that support residential care, nursing, supported living, domiciliary care administration, specialist healthcare or other regulated services.

The right property needs to work commercially while also meeting the operational requirements of the proposed service.

For landlords and investors, this means understanding what the care operator intends to do before marketing a commercial property specifically for care use.

For operators, it means checking the property's planning position, condition, accessibility, lease terms and suitability before committing to a long-term tenancy.

In England, providers carrying out regulated health or adult social care activities may need CQC registration, and CQC requires providers to have appropriate locations and premises ready before applying.

What Is Commercial Property for a Care Operator?

Commercial property for a care operator can refer to buildings used to operate, manage or deliver care services.

Depending on the business model, suitable premises could include:

• Former care homes

• Nursing homes

• Healthcare centres

• Medical centres

• Clinics

• Offices

• Former hospitals

• Community buildings

• Specialist accommodation

• Large commercial buildings

• Institutional properties

• Mixed-use buildings

• Properties suitable for conversion

The important point is that the word "commercial" does not automatically determine whether a building can legally be used for a particular care service.

The proposed use needs to be assessed separately.

What Types of Care Operators Need Commercial Property?

Care-sector property requirements vary considerably.

A property search could be for:

• Residential care operators

• Nursing care providers

• Supported living providers

• Domiciliary care agencies

• Specialist care providers

• Healthcare operators

• Rehabilitation providers

• Mental health support organisations

• Learning disability services

• Elderly care providers

• Care administration businesses

Each service can have different requirements around accommodation, staffing, accessibility, planning and regulation.

A landlord should therefore ask what type of care service the operator intends to provide before presenting a property as suitable.

Existing Care Homes and Former Care Premises

Existing and former care properties can be particularly relevant to operators because they may already contain features such as:

• Multiple bedrooms

• Communal lounges

• Dining areas

• Bathrooms

• Staff facilities

• Kitchens

• Laundry rooms

• Storage

• Parking

• Gardens

• Accessibility features

However, previous care use does not guarantee that a new operator can simply reopen the building.

The incoming operator should investigate the current planning position, building condition and regulatory requirements.

An old CQC registration should also not be treated as transferring automatically to a new operator.

Commercial Offices for Care Operators

Not every care business requires residential accommodation.

A domiciliary care company, for example, may need an office from which it manages staff, records and care services.

CQC's current guidance states that home-care agencies need to provide information about their main office or base, including where the service is managed and records are kept. CQC may refuse an application where the premises are unsuitable.

Commercial office landlords may therefore have opportunities to serve the care sector without converting the property into a residential care facility.

Potential requirements include:

• Reception

• Staff offices

• Meeting rooms

• Training space

• Secure records storage

• Staff facilities

• Parking

• Accessible entrance

• Reliable internet and communications

• Suitable space for management operations

Healthcare Premises for Care Operators

Healthcare-related properties can also attract specialist operators.

Potential properties include:

• Former GP surgeries

• Medical centres

• Clinics

• Treatment centres

• Rehabilitation premises

• Former hospitals

• Healthcare offices

These buildings may have useful existing infrastructure, but the proposed service still needs to be assessed against planning, building and regulatory requirements.

The previous use of a property should be treated as useful background information rather than automatic approval for a new use.

Planning Use Must Be Checked

Planning is one of the most important issues when considering commercial property for a care operator.

The landlord and operator should establish:

• Existing use class

• Previous use

• Proposed use

• Number of occupants

• Nature of care provided

• Whether people will live at the property

• Whether staff will be permanently based there

• Whether physical alterations are proposed

• Whether a material change of use is involved

• Whether planning permission or prior approval is required

Planning Portal explains that a change from one use class to another will generally require planning permission unless an applicable exception or permitted development right applies.

The local planning authority should be consulted where there is uncertainty.

C2 Care Homes and Commercial Property

In England, Planning Portal identifies residential care homes, hospitals and nursing homes within Use Class C2, which covers residential institutions.

This can make certain former institutional or commercial properties potentially relevant to care-home operators.

However, an operator should not assume that a building can be used as a C2 care home simply because it is a large commercial property.

The property's existing planning use and the proposed operation need to be assessed on their individual circumstances.

Supported Living Requires a Separate Assessment

Supported living should not automatically be treated as a residential care home.

Planning Portal identifies C3(b) as covering up to six people living together as a single household and receiving care, including certain supported housing schemes. Other supported accommodation arrangements can have different planning implications.

The exact operation therefore matters.

Questions should include:

• How many people will live there?

• Will residents have individual tenancy agreements?

• What support is provided?

• Is care provided at the property?

• Will staff sleep or work permanently at the premises?

• Is the accommodation self-contained?

• What communal facilities are provided?

Planning advice should be obtained for the specific arrangement.

CQC Registration Is Separate From Planning

Care operators need to understand that planning approval and CQC registration are separate matters.

CQC registration relates to regulated care activities and the provider carrying them out.

Planning permission concerns the lawful use and development of the property.

A commercial building could therefore have an appropriate planning use but still require the operator to complete CQC registration.

Likewise, CQC registration does not replace planning permission where planning consent is required.

CQC states that providers must register for regulated activities before carrying them out and that operating a regulated activity without registration is an offence.

Legal Occupancy Evidence for Care Operators

A commercial property lease can also form an important part of a care operator's registration preparations.

CQC's current guidance requires evidence of legal occupancy for care homes, home-care agencies and supported living services. The evidence must show that the provider has legal permission to operate its service from the chosen premises.

For this reason, a care operator should ensure the proposed lease or licence clearly establishes its right to occupy and operate from the property.

Landlords should also ensure the permitted use is accurately described.

What Makes Commercial Property Suitable for Care?

There is no universal specification because care services differ.

However, operators may investigate:

• Building size

• Floor layout

• Number of rooms

• Bathroom provision

• Accessibility

• Parking

• Outdoor space

• Kitchen facilities

• Staff areas

• Storage

• Fire safety

• Heating

• Electrical systems

• Plumbing

• Transport links

• Local amenities

• Potential for refurbishment

The property's suitability should be considered alongside the needs of the intended service users.

Accessibility for Care Operators

Accessibility can be particularly important when commercial premises are being adapted for care.

Potential works include:

• Ramps

• Accessible entrances

• Lifts

• Wider doorways

• Accessible bathrooms

• Grab rails

• Level access

• Improved circulation

• Accessible parking

• Adapted kitchens

• Handrails

The landlord and operator should establish whether alterations are permitted under the lease and who will fund them.

Planning and building regulations should also be considered before significant works begin.

Building Regulations and Care Premises

A change of use or substantial refurbishment can trigger building regulations requirements.

CQC's current guidance states that from 5 May 2026, relevant new provider applications must include a building control final certificate where the location requires building regulations approval. CQC also makes clear that building regulations approval is separate from planning permission.

This is particularly relevant where an operator is taking a commercial building and converting or substantially adapting it for care use.

Landlords and operators should coordinate with appropriate building control and construction professionals.

Fire Safety Should Be Investigated Early

Fire safety can be a major consideration when adapting commercial premises for care.

Depending on the building and proposed use, operators may need to consider:

• Fire alarms

• Fire doors

• Emergency lighting

• Escape routes

• Fire-resistant construction

• Signage

• Compartmentation

• Evacuation arrangements

• Emergency access

• Kitchen fire safety

A commercial property that appears suitable from a floor-area perspective may require substantial investment to meet the safety requirements associated with its proposed use.

Refurbishing Commercial Property for a Care Operator

Some care operators may actively seek commercial properties requiring refurbishment because the location or building configuration is suitable.

Potential works include:

• Internal reconfiguration

• Bathroom installation

• Kitchen refurbishment

• Electrical upgrades

• Heating improvements

• Plumbing

• Flooring

• Fire safety works

• Accessibility adaptations

• Roof repairs

• Decoration

• Security improvements

• External works

The cost of these works should be established before agreeing the commercial terms.

Fraser Bond can assist with refurbishment planning, building works, contractor coordination, repairs and ongoing property maintenance.

Who Should Pay for the Refurbishment?

There are several possible approaches.

Landlord-Funded Works

The landlord completes agreed improvements before the operator takes possession.

Operator-Funded Works

The care provider funds the works, subject to the landlord's approval.

Shared Investment

The landlord and operator agree to divide specific refurbishment costs.

Rent-Based Arrangement

The commercial terms take the operator's investment into account.

The appropriate arrangement depends on the property, lease length, investment required and negotiating position of both parties.

Lease Terms for Care-Operator Property

Care operators may need sufficient lease security to justify substantial investment in premises.

The lease should clearly address:

• Permitted use

• Lease length

• Rent

• Rent reviews

• Break clauses

• Repairs

• Maintenance

• Insurance

• Service charges

• Alterations

• Refurbishment

• Planning responsibilities

• Compliance responsibilities

• Assignment

• Subletting

• Reinstatement

• Access and inspections

Both parties should obtain specialist legal advice before completing the lease.

Why Lease Length Can Matter

A care operator may need to invest heavily in adapting commercial premises.

For example, the operator could spend money on:

• Accessible bathrooms

• Fire safety systems

• Internal reconfiguration

• Staff facilities

• Kitchen facilities

• Specialist equipment

• Security

• Decoration

A short lease may make such expenditure difficult to justify.

A longer lease can potentially give the operator greater certainty, although the appropriate term depends on the specific project.

Due Diligence for Care Operators

Before leasing a commercial property, the operator should investigate:

• Title

• Planning use

• Planning history

• Building condition

• Fire safety

• Accessibility

• Electrical systems

• Heating

• Plumbing

• Roof

• EPC

• Insurance

• Lease terms

• Service charges

• Parking

• Local amenities

• Refurbishment requirements

The operator should also calculate the total cost of occupation rather than focusing only on the headline rent.

Due Diligence for Property Owners

Landlords should also assess the prospective care operator.

Depending on the transaction, this may include reviewing:

• Company details

• Trading history

• Financial information

• Existing operating locations

• Regulatory status

• Business plan

• References

• Proposed funding

• Guarantees

• Parent-company support

CQC considers the suitability of applicants, staffing, qualifications, experience, policies and the size, layout and design of the places where care is intended to be provided.

However, CQC registration should not be treated as a substitute for the landlord's own commercial due diligence.

A Commercial Property Brief for Care Operators

A landlord or agent marketing commercial property to care operators can provide a detailed property brief.

For example:

Property type: Commercial or specialist property

Potential use: Care, healthcare, supported living administration or other specialist use, subject to planning and regulatory requirements

Floor area: Clearly stated gross and net internal areas

Accommodation: Offices, rooms, communal areas or bedrooms where applicable

Facilities: Kitchen, bathrooms, storage and staff facilities

Accessibility: Existing adaptations and potential for further works

Parking: Number of spaces and accessibility

Planning: Existing use and relevant planning history

Condition: Ready for occupation or refurbishment required

Tenure: Lease or freehold

Lease: Proposed term and commercial terms

Location: Transport links, amenities and relevant local services

A detailed brief allows care operators to assess whether the property is worth progressing.

Commercial Property for Residential Care

If the operator intends to establish a residential care home, the property requirements can be more extensive.

Potential features include:

• Multiple bedrooms

• En-suite or accessible bathroo