Buying commercial property is always a long-term investment, and therefore you need to plan ahead. Carefully consider what type of property is best suited to your needs and how long you are going to be there before signing on the dotted line.
Buying commercial property is always a long-term investment, and therefore you need to plan ahead. Carefully consider what type of property is best suited to your needs and how long you are going to be there before signing on the dotted line.
Consider the type
You will initially want to decide what type of property you will be looking for. For retail space, shopping centres should be your first point-of-call, whilst office buildings or industrial property for sale, such as a warehouse or factory, offer you vast spaces.
Office buildings include single-tenant sites, small office blocks or even full-on skyscrapers, whilst a defining point of industrial properties needs to be its clear height, the actual height of the interior, especially if it is a large box property. Also an option to consider is the land category, which focuses on undeveloped and raw land, which can be developed upon in the future.
Consider the condition
Always make sure that the property is in tip-top condition. A full survey should be carried out by a chartered surveyor, which will protect you from any nasty financial surprises in the future, such as unexpected repairs.
All utility meters should be measured before you move in, whilst it may also be worth taking photographic evidence of every nook and cranny of the premises for future disputes.
Remember, whether it is commercial or residential, all properties will want to make a profit in the end, so top-quality Grade A office space is key here.
Consider the length
You will want to plan how long you intend to occupy the site. If you intend to sell the site and move on quickly, then it may be worth looking at lower-budget locations, rather than working on a long-term investment.
Of course, business plans can change at any time, but there is no point spending all that extra money on repairs if you will be removing it from your portfolio as quickly as you could say commercial property. Investors may renovate to sell on but weigh up the financial ramifications of this.
Consider the location
Location. Location. Location. Three words to always remember. Know your customer base and be sure that you are accessible to them and potential future clients. Do not get carried away if you fall in love with warehouse space. Consider your budget, the business potential in the area, and if you will have strong customer traffic in such a place. These are the factors that matter the most.
Accessibility for your employees is vital too, as you ultimately need a workforce that can, well, get to work every day. Can your workers get there? Once there, is it even convenient for them to work there on a daily basis? Are all on-site facilities suitable for your business? These are all questions you should be asking from the get-go.
The right commercial space is neither cheap nor easy to get, and that is why it is crucial that you plan ahead before jumping straight into an investment. Market values and commercial zones make the commercial sector much trickier to understand than the residential market. When in doubt, always seek professional advice and never make hasty decisions on the spot.
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