Some businesses may choose to lease their premises, but investing in commercial property is a great move, particularly if you are planning on expanding your business, now or in the future. Owning a commercial property can give you a lot more freedom and flexibility but also requires a substantial investment of both time and money, so it’s important to make sure you’re making the right choice.
Here are five things to consider before buying commercial property.
Location
This is a key factor for any business and you’ll need to think about what your business requires and how that might impact where you choose to purchase the property. If you’re buying property for office space, you may want to consider if you need to be close to transport links or if you can choose space outside of the centre which will be cost-effective. Also, think about how many staff members will be working there and if you’ll be bringing clients to your office.
Budget
Commercial property is a big investment in itself, so you need to make sure you’re correctly budgeting for the building. When buying a new property for your business, you may also have to buy new furniture, such as for an office, restaurant or shop. If the building is older it may also need renovating to make it attractive to clientele, so factor that into the cost.
Get a survey
Just like any property purchase, you need to get a survey to ensure there is nothing concerning about the building’s structural integrity or there are no issues such as damp, unstable walls or subsidence. It’s wise to invest in a full survey of the property so you can be sure you won’t run into any costly issues further down the line. As you will be investing a considerable amount of money into the commercial property, it’s better to find problems now and not later.
Opportunities to sublet
Subletting is a great way to make more profit for your business. If the premises is too big for you currently, it’s worth considering subletting so that you can make use of the space until your business grows. This isn’t always possible, however, so check with your mortgage company first to see if your lease allows you to.
Conduct your research
You need to do a lot of research on the property, as you would any other big purchase, so you can establish if it is a worthwhile investment. Look at the long-term predictions for the property and look into which aspects may affect the properties value. A property that declines in value will cost you business capital, so try and find the best property to optimise your investment.
Are you looking for a reliable commercial property lawyer in Kent? Our experienced team at Andrew Lee can provide a variety of services for residential and commercial property developers and buyers including planning, easements, restrictions and legal obligations. Visit our website to find out more.
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