Buying a commercial property as an investment can be an extremely lucrative prospect. Business properties of all types and sizes can command excellent rental rates and so the owner can collect a monthly fee, while at the same time watch the property’s overall value rise over time. Before you buy a commercial property, however, there are several important things to consider, the key to managing such a project successfully is in the main down to planning.
As with the purchase of any property, whether it be commercial or residential, its location is all important. You may have some great ideas of your own based on experience, research or local knowledge, but irrespective of that it is always good to get an impartial opinion from a respected real estate adviser. They are likely to have a far broader overview of the commercial property market, prices and locations.
The history of the property
Once you have a list of properties that you are interested in, research the recent history of the property. You need to know why the property is on the market, is it currently to let or is there a business operating from it and if it’s empty, then why is it empty. This information will go a long way in helping you evaluate its true worth to you as an investor.
Who are the neighbours?
Another good indicator of the property’s value is who it is neighbours with. If it is surrounded by lots of successful businesses, then this bodes well for your potential investment. Making a note of the surrounding businesses and then using the Companies House website to investigate how well they are doing is not only great for your peace of mind, but it will also look good as a section of your business plan.
Transport links are a crucial component of a premium business location. Not only do the people who work within the business have to be able to get there easily, but a whole host of other visitors such as customers, clients, and logistics vehicles. Ideally, the property will not only have good links via roads but by train and if it’s near an airport all the better. Depending on the type of business that could be run from the property, passing trade may also be an important factor.
Buying a commercial property can be a great investment, but if you don’t do the legwork before you part with your money it may lead to having to invest more before the property will work for you or trying to sell it on and the latter would mean lots of time and energy wasted.