4th August 2021
Buying a commercial property can be long-winded. It involves time, money, caution and research. You must be sure your investment is wise and that the financial risks are minimal. Here we look at the things you should consider when buying your first commercial property.
The purpose of the property
What is the primary purpose of this property? Whether it is to be used as a warehouse, office, healthcare setting, educational setting, leisure centre or shop, ensure it meets all your requirements. You must have a clear plan for the property, and it must provide what you need for your business.
Does it meet your criteria?
Detail a thorough plan of all criteria your property must meet. The property must be suitable for your business, have sufficient parking, security options, the right size, location, age, etc. You will want to ensure any required work is minimal and not expensive. Do not compromise on these criteria as it may hinder your business.
For your commercial property to be a business success, you will need the site to suit your industry and customer base. If you have a retail shop, you will ideally want a town centre location. Warehouses and offices are more suited to an industrial estate or out-of-town locations. The things to consider here are visibility, accessibility and safety of the location.
You should seek professional advice when investing in commercial property. This includes enlisting an accountant, conveyancing solicitor and a commercial building surveyor at the least.
You will naturally aim to grow and expand your business. Therefore, the commercial property you buy will need to have flexibility. You should think ahead and have a vision for future growth. This may require the building to be adaptable so that you can change its core purpose, perhaps extend it, add more parking or machinery, etc.
Full structural survey
Once you are happy with the property and had several thorough viewings, it is time to action a commercial building survey. An extensive examination of the entire property is vital before you commit to the sale. The survey results will help advise and direct you regarding potential issues, repairs and nasty surprises before you exchange contracts.
Are you ready?
No investment is 100% risk free, but you must be sure you are ready to make this big step. Weigh up the pros and cons and make sure you are financially prepared. You are unlikely to make a decent profit quickly, and you may have to spend additional money before profit comes in. You must be confident the long-term benefits are worth the commitment.
For information on the chartered surveyor services we offer at Taylor Freeman Kataria, contact our professional team on 0208 5999911.