If you are thinking about buying commercial property the chances are your business has grown enough that you can cover those costs. Alternatively you may be looking for somewhere to invest in that you can then sell on to a business. What you need to be aware of are the factors involved with buying the property. There are a few things to consider before buying commercial property and it pays to be aware and do your research before you make one of the biggest investments you can make for yourself or your business.
What you want
It may sound obvious but you need to think what you want- are you buying for yourself or somewhere for tenants to rent out? The reason this is important to consider is if it’s for your own business you need to think about your needs but for potential tenants you have to think about the kind of space they would need.
For example with more people interested in starting their own business there is the potential for renting office space for smaller start up companies. If you can offer this space at a relatively lower cost to other offices in the local area then you could find you’re in great demand with companies that otherwise may not be able to afford office space.
Location and timing are key factors when buying commercial properties- ideally you want up and coming areas so that you can buy at a relatively low price with better resale value at a later date.
However it is important to be wary- for example some landlords investing in vacant properties after the closure of high profile companies like Woolworths only to find that they were not getting a return due to the struggling retail sector. While the location is important this should also be balanced with a view to what is likely to sell in that area as well.
Finally there are some legal issues to consider before you make a purchase. As with any other property purchase you have to check the details of any agreement before signing on the dotted line. Ideally you should get a survey of the property in order to make sure that it is in the best possible working condition. If you are looking to redevelop an existing property then planning permission will be needed.
Additionally you also need to get legal advice with regard to whether or not a property is suitable for the kind of business you/your potential tenants want to use it for. For example someone running a bar may not want to start offering food but may want the option at a later date. Therefore this is something that should be checked before making a purchase.
For more information about buying commercial property and other legal issues around business purchases it is worth discussing this with one of our specialists. Contact us today and we will be happy to go into more detail!