While some business owners prefer to lease commercial premises, others choose to buy in order to gain greater flexibility and control. Purchasing a commercial property can be an excellent option for SMEs looking to expand, but it requires careful planning, research, and investment both in terms of money and time. Here are some important factors to consider before making a purchase.
Conduct Thorough Research
Before committing to a purchase, it’s essential to research the market and the specific location thoroughly. Look at long-term predictions for the area, including local development plans, economic forecasts, and potential changes that could either increase or decrease the property’s value over time. Understanding these factors early will help you make an informed decision.
Consider Location
Location is one of the most critical factors when buying commercial property. Think carefully about how the premises will be used and ask yourself key questions:
- Will clients or customers be visiting frequently?
- How many employees will need to work on-site?
- Is the property easily accessible?
A well-chosen location can enhance your business operations and support long-term growth.
Transportation and Parking
Practical considerations like parking and transport links are often overlooked. If your property is close to public transport, commuting for employees and visitors will be easier. For out-of-town locations, you’ll need to think about accessibility and whether the site is convenient for staff and clients alike.
Flexibility for the Future
Businesses evolve, and your premises should be able to adapt. Look for a property that allows for modifications, expansions, or reconfigurations. Always check the property deeds for any restrictions that could limit your ability to make changes in the future. Flexible premises can save time, money, and stress as your business grows.
Budgeting Wisely
Buying a commercial property involves more than just the purchase price. Consider the additional costs such as furnishings, ongoing maintenance, utilities, and long-term upkeep. Make sure your budget reflects both immediate and future expenses to avoid unexpected financial strain.
Deposit Requirements
A significant deposit is usually required when purchasing commercial property. Assess your finances carefully to ensure you have the necessary funds available. Planning ahead for this upfront cost is crucial to secure the property without delays.
Property Surveys
A comprehensive property survey is essential before finalising any purchase. Basic surveys are rarely enough; a full survey can reveal structural issues, potential repairs, and other hidden costs that may affect your decision. Investing in a thorough survey can save money and prevent future problems.
Be Realistic
It’s important to be sensible about timing. You may not need to buy immediately, especially if you’re a new business. Renting temporarily can be a practical solution while you establish your company and evaluate your long-term property needs.
Sub-Leasing Opportunities
If you’re considering a property that is larger than your current requirements, sub-letting part of the premises can help manage costs and improve cash flow. Before doing so, check the lease and mortgage agreements carefully, as there may be restrictions on sub-letting.
By considering these key factors, you can make a well-informed decision when buying a commercial property, ensuring it meets both your current and future business needs.
For more information or for expert advice on business or personal legal issues, contact us by email at info@carterbond.co.uk or call us on 020 3475 6751.
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