For many business owners, the process of buying commercial property can seem an intimidating and daunting task. Due to lack of previous experience, you may be unfamiliar with the process and therefore miss some of the essential preparation that you MUST take before completing the transaction.
That is why the team here at CSD – Real Estate Appraisers have put together the following article. Outlining three essential steps for any first-time property buyer…
Think ahead and do your research.
Even for an established business, the process of purchasing Commercial property can be a significant and unpredictable step in your development. That is why it is important to be highly practical with your decision making.
Take the time to investigate the market, looking at the current circumstances as well as future projections. Think about the stability of not only the market but also your business and personal finances.
By choosing the wrong time to invest in Commercial property, you could potentially devalue your entire business as well as the security of your initial investment.
Make sure the premises are fit-for-purpose.
Purchasing a Commercial property should not only be a key step in the history of your business but also a major factor in your on-going plan for expansion in the future. Therefore, any investment you make in Commercial property should align with the goals and objectives of your firm. This includes:
Accessible for clients & customers
Suitable facilities (administrative space, shop floors, etc)
Potential for expansion/ flexibility to change
Options for sub-letting and parking
By accounting for all the above elements, you can help to ensure that your investment in Commercial premises is not only synched up with the planned developments in your business but also future proofed financially.
Account for any extra costs.
Finally, one of the most important steps for anyone buying commercial property, is to make sure that they are aware of all the potential expenditure associated with their new Commercial premises. This includes:
Property Surveys – To help ensure that you are making a confident and informed purchase, you should request an independent RICS qualified Surveyor to inspect the property on your behalf.
Legal Fees – The legal advice and personal guidance of professionals with many years of experience in the field is invaluable but will undoubtedly generate a hefty price tag.
Repairs – If your property survey ends up highlighting several issues that require immediate attention (or you were planning on renovating the property yourself) it is important to set aside a substantial portion of your budget for repairs.
Furnishing/Equipment – If you are first-time buyer, you will also need to factor in the costs of furniture, lighting, equipment, tools, etc.
Finance – Lastly, you should also set aside some additional costs to actual finance the property (i.e. Commercial Mortgage, Loan or Cash).
If you are interested in our commercial surveying services, feel free to contact us by telephone on 0808 169 8881 or via email using firstname.lastname@example.org.
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If you have enjoyed this article about buying commercial property and would like to learn more about the industry, simply check out this list of related articles below:
- How to Maintain a Green Commercial Property
- How to Maintain Commercial Property During the Autumn
- Drone Technology in Commercial Surveying – The Pros & Cons
- Your Guide to Commercial Valuation Reports
- Facts about Japanese Knotweed
This post was written by James Powell