Six Tips for Buying a Commercial Property

Posted on 6 August, 2012 by Jodee Redmond

Are you considering entering the commercial property market? Before you sign the papers for your new property, keep these tips in mind:

1. Learn as much as you can about the local economy of the areas you are interested in before you narrow your search to specific neighbourhoods and properties. You will need to know details, such as residents’ average income and average employment rate for the region. (If you are interested in a property located close to a hospital or university, you will pay a higher rate, but it will be easier to find a buyer if you decide to sell later on).

2. Consider your present business needs, as well as how you foresee your business expanding over the next several years. Make sure the building has a capacity for expansion, if necessary. You may want to consider leasing some space in the building to a tenant to generate some cash flow until your business is ready to expand into a larger space.

3. If you are looking at an older building, you will need to consider the cost of repairing and/or upgrading the electrical system or the roof. Add this expense to your property acquisition budget.

4. Take pictures of the properties you are shown. It can be difficult to remember the features of each property if you have seen several options, and you will want to have a visual record of any defects which you can bring to the seller’s attention to negotiate a better price

5. Find a lender in advance. That way you won’t lose out on a property you really want to another buyer who has arrangements in place.

6. Work with an experienced commercial property agent. Your estate agent should be able to recommend an experienced lawyer if you don’t have someone in mind. You will want your closing to proceed smoothly and without any undue delays.




Leave a Reply


Recent Posts

surveyor with measuring instrument inside building-site

West Midlands Surveyors report Sharp Rise in Commercial Construction

Video camera viewfinder - recording in TV studio - Talking To The Camera

Show goes on as Granada HQ becomes Entertainment Hotel

Shopping time, closeup of teenage girl legs with shopping bags at shopping mall

Community Shopping Centre Specialist Ellandi acquires Bootle Strand

Scottish-Property-Tax-shake-up-could-slow-Construction-and-deter-Investment-experts warn

Scottish Property Tax shake-up could slow Construction and deter Investment experts warn

Canary-Wharf-Group-and-Societe-Generale-agree-1-Bank-Street-Deal

Canary Wharf Group and Societe Generale agree 1 Bank Street Deal

Image of young couple with cart in supermarket

Waitrose Boss claims Supermarket Estates are “20 Years out of Date”

Dark spooky forest with silhouette of a man walking

The Ghosts of Children

Debenhams-plans-Estate-Expansion-despite-Profit-Plunge

Debenhams plans Estate Expansion despite Profit Plunge

two modern high speed train with motion blur

HS2 bosses cite Sheffield Gateway’s impact on Rateable Values

Photograph taken in Felixstowe, Suffolk, England May 2011

Uncertain Future for Hotel with First World War History

Business-Rates-Bounty-could-fund-Northern-Powerhouse-Proposal

Business Rates Bounty could fund ‘Northern Powerhouse’ Proposal

3D plan drawing

Landmark Development planned for Former Yorkshire Post Site

Foggy night castle with a horseman riding

Staffordshire’s Creepy Castles

Painting on wall 3d render. Nice bright clear illustration.

Home Retail Group announces Homebase Closures

Silverstone-to-manage-North-East-Car-Dealership-Expansion

Silverstone to manage North East Car Dealership Expansion

Compass on the map of Republic of Ireland

Lloyds names Shortlisted Bidders for £1.5bn Irish Portfolio