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There are numerous questions to ask when looking to purchase commercial property, so here are a few key things we’d recommend considering. It is essential to ensure you consider a variety of advice, ahead of making decisions for your firm, but here is our guidance.
Key Things To Consider When Looking To Buy Commercial Property
1. Location
The location of your property is crucial and arguably just as important a factor as the finances. Ensure that your location is suitable for your business’ activities and ensure you think logically when viewing potential options. It’s important to consider the property’s position in comparison to your employees, is a large commute involved? Is it easily accessible for staff and visitors, does it have the required amount of parking needed? And finally is it in a location you’d be happy to bring prospective clients to?
2. Don’t forget to budget
It is crucial that your budget is calculated correctly, before pursuing any viewings of properties. Ensure that you have factored in any costs for required work, labor and new furniture. Focusing on real estate just under budget is always best, so you have some spare finances in the account at all times. Here is one budget that may help you!
3. Consider the Transport Options
If in a city, are there ample public transport options that link seamlessly to the location of your new property? This is paramount with the increase in train travel and other public methods to help the environment. Consider if these transport links are accessible for staff and potential visitors, to ensure they can get to your premises in a timely manner.
4. Explore Commercial Mortgage Options
With so many options on the market, navigating the mortgage market can often feel like a minefield.
5. Educate yourself on properties suitable for a commercial mortgage
Here is a comprehensive list we acquired from SWBF:
Freehold public houses
Offices
Convenience stores and retail units
Industrial units, factories and warehouses
Mortgages for Land
HMO (houses in multiple occupancy) mortgages
Care/nursing home mortgages
Day nurseries
Restaurants
Hotels and B&Bs
6. Take into account the deposit that may be required
It’s important to assess the deposit you will likely need for the property before beginning your search, mortgage broker can help advise you on this too.
7. Be as flexible as possible
Have vision when viewing property, this will help you discover more options and potentially get a better deal, if you’re willing to put some time and money into developing the property.
8. Consider Sub-Letting
Be cautious of the fact that you may find a property you love that is a little over budget or too large, so consider subletting and read up on the details of what this entails. Therefore you’re well-informed incase this does become an option.
You can check the sub-letting laws here
9. Get the property surveyed
It’s important that you ensure your property is up to standard before purchasing it, to make sure that you’re getting a fair deal on the property. Read more here.
10. Finally set your goals for the property
Ensure you’ve run the numbers and have the goals for your Return on Investment so you don’t overspend. Company finances are paramount to your decision about which property to purchase.
