Although some business owners want to lease their commercial premises, others prefer to buy in order to enjoy greater flexibility and freedom. Buy a commercial property represents a good choice for many SMEs that want to expand, but it’s important to understand the process and level of investment involved, both in terms of money and time. Here are some of the key considerations to bear in mind when buying commercial properties.
Conducting Research
It’s vital to research thoroughly before jumping into a purchase. Examine the long-term predictions for any location in which you’re viewing commercial property to see if anything is revealed that could hinder or help the property’s value over time.
Consider Location
Location couldn’t be more important when buying a commercial property. Think carefully about what the premises will be used for and ask vital questions like:
- Are clients going to be visiting frequently?
- How many employees will need to work here?
- Can this location be easily accessed?
Transportation Options
One thing that a lot of business owners forget is parking and transportation. If the property is located near public transport facilities, travelling to the office isn’t too difficult. But if the premises is out-of-town, it could be far more problematic.
Flexibility Is Key
Looking for a premise that’s flexible is important. Businesses change and expand over time, so finding premises which are suitable for modification to suit the needs of the business is key. Before you buy a commercial property, check the deeds to determine whether any restrictions exist that could prevent you from changing the property.
Budgeting
Buying a commercial property won’t be cheap, and when drawing up your budget you need to fact in new furnishings for the premises, ongoing costs, and long-term upkeep expenses.
Don’t Forget The Deposit
You’ll need to put a significant deposit down on your purchase, so consider the funds you’ve got available and if you have the means to put a deposit down.
Property Surveys
Getting a full survey done on the premises is essential before you buy. Basic surveys aren’t sufficient, as checking for all issues is imperative.
Be Sensible
You need to be sensible when buying commercial properties. You may not actually need to buy at the present time. If you’re starting a new company, renting for a short period first until you’re firmly established may be the best course of action.
Can The Premises Be Sub-Let?
If you’re looking at buying a commercial property that is too large for the needs of your business right now but you’re planning to expand in the future, sub-letting could be an option for you, helping you to manage your cash-flow more efficiently while maintaining more flexibility. You’ll need to check the lease carefully first though, as well as carrying out enquiries with the mortgage lender, as there may be clauses that prevent you from sub-letting the property.
With these considerations in mind, you’ll be in a better position to buy a commercial property.
