10 things to look out for when buying a commercial property
Buying a commercial property is an exciting venture, but it also comes with plenty of potential pitfalls and risks. That means you’ll want to have as much information about the process as possible…
There are plenty of reasons why you might want to buy a commercial property. Perhaps you’re fed up with renting out an office for your business, or you’re looking at a unique investment opportunity? Maybe you’ve even got your heart set on becoming a commercial landlord.
No matter the reason, there’s always going to be one common denominator – it’s never going to be entirely straightforward!
That’s why, in this post, we’ve put together a handy list of things you should be looking out for when it comes to buying a commercial property. From assessing the surrounding location or sourcing a suitable commercial property solicitor, there’s plenty to consider. Take a look…
Things to look out for if you want to buy a commercial property
Space is key
When you’re looking to buy a commercial property, one of the most important things you’ll want to keep a close eye on is the general space that comes with the property. That relates to both the space inside and outside the property. The more space, the merrier.
Space is always going to be incredibly attractive and will, of course, increase the price of the property itself. You should also consider the fact that plenty of space will be a huge bonus if you’re looking to use the property for your own business.
Consider natural lighting
Picture this – you’ve found a commercial building that’s modern, has good transport links and is centrally located, all for a very reasonable price. Sounds too good to be true, right? Well, it may very well be.
Many commercial buildings, especially ones which are located in a busy urban environment, suffer with poor natural lighting, making them dark and dingy during certain points of the day. As you might expect, that’s going to be a bit of a sticking point, especially for those working in the building.
To get around this, you’d be well advised to visit the office as many times as you can to get a general feel for how well-lit the building is. Remember, good natural lighting will also save your electricity bill!
How secure is the commercial building you’re taking a close look at? Is it a case of there being a rudimentary lock on a single front door? Or are there sophisticated alarm systems already in place?
These are really important questions that you’ll need to make sure you have answers to before you even consider putting down a deposit for a building. Never take security lightly. The more secure a building is, the safer an investment it will be and the less additional money you’ll need to spend.
What the surrounding area looks like
There’s every chance you’ll have found the perfect building but, unless it’s in a suitable location with a safe surrounding area, it’s not likely to be the right choice. Take a look at the crime rates for the immediate surrounding area and, most importantly, visit the area in person so you can get a better idea as to what it looks like.
If the building is being used to host your own business, don’t forget to look at the parking options available to anyone visiting it via car. Not having onsite parking isn’t always going to be a dealbreaker – far from it – but you should look out for properties that are at least within walking distance of parking spots.
Public transport links
On that same note, don’t forget to consider how close the commercial property is to public transport links, such as bus routes and train stations.
More people than ever travel to work via public transport, so it’s important to make it as easy as possible to reach a building through this method. You don’t want your employees to be trekking on foot for an hour every day just to reach the office – you certainly won’t have many employees left before long!
Consider Your Likely ROI
From a financial perspective, don’t forget to keep the potential return on investment (ROI) into consideration. A building may be a bargain and appear to be a great short-term solution, but that doesn’t necessarily mean that you’re going to make a substantial profit in the future. Keeping an eye on potential rather than an immediate deal is probably going to be the best decision in this regard.
Don’t Forget Tax
Tax is something that often catches many first-time commercial property owners by surprise. We all know about the sort of taxes we’re liable to pay when we buy a residential property, but the same often applies to commercial properties as well!
VAT, Stamp Duty Land Tax, and Land & Buildings Transaction Tax are all potential taxes you will need to pay, depending on the circumstances of your purchase.
Check the prices of comparable properties
Think you’re getting a good deal? Make sure of it! Never hesitate to do a spot of research so you can get a better idea as to whether the price on offer is reflective of the local market.
You never know, you might also be able to use this to your advantage so you can get a better deal. You don’t know until you try!
Make sure to speak to an expert
Speaking to a conveyancer is absolutely essential whenever you carry out any sort of property transaction – commercial properties are no different. There are plenty of commercial property conveyancers you can speak to who can guide you through your transaction from start to finish.
Are you thinking about buying a commercial property?
So, there you have it – all you could want to know if you’re interested in buying a commercial property. It can be a complicated process, but by carrying out some thorough research, you should be in a good position to make the right decision.
Have you got any more questions about buying a commercial property? Feel free to leave them in the comments below!