Whether you need to buy a commercial property for your business, or you’re looking to invest, there are a lot of factors to think about before choosing the right property.
There are likely to be a number of things you need to consider, such as the amount of income the property will generate and if that income will be proportional to the purchase price; whether the location is advantageous for the business; what kind of commercial property insurance you might need to purchase from companies like Thimble; and whether you will manage the property yourself or hire a property manager.
The commercial property market is extremely competitive. So, it’s useful to know what are the major things to look out for and where to look for the best prices.
How to find the perfect commercial property opportunities
Before we delve into where to look, let’s discuss what you should look out for. There’s a lot of factors to consider here, but the main ones include:
- Your budget
- The type of business you run
- Any additional features you might need
Your budget is obviously going to play a huge role in the property you end up with. Not only do you need to consider the initial purchase cost, but you also need to factor in the day-to-day running costs of the property too. There’s also the fees involved which can push the costs up, including drafting fees which are usually substantially higher than the fees associated with residential properties.
The type of business you run will also play a part in which property you should invest in. Are you looking for a building which has good warehouse space for example? Or maybe you need plenty of office space? Then there’s additional features to consider such as whether you need parking space for customers or clients.
Finally, location is something you should never overlook. If you are looking to sell products, you’re going to need to make sure you’re setting up in a location your customers can easily get to. Also, location will determine cost as some areas are obviously more expensive than others.
Thinking of investing?
If you’re searching for a commercial property as more of an investment opportunity, retail outlets are a great option. You just need to ensure you’re investing in property in thriving towns and cities.
The retail sector has struggled to recover after the financial crisis, but certain areas are performing much better than others. So, once again, it’s largely down to location. It’s important to also consider which type of shops are most likely to do well.
In order to successfully invest in the right commercial properties therefore, you will need to do a lot of research beforehand. Another thing to consider is the importance of viewing the property before you buy. If you don’t, you could end up investing in a property which requires a lot of work. This can really drain your finances and delay the time you actually start to see any profits coming in from your investment.
Where to find commercial properties
So, you know what to look out for when searching for the right commercial property, but what about where to look?
It’s important to compare your options as some avenues are much costlier than others. Your main options include:
Private sales – Just like with houses, it is possible to find private commercial sales. However, they do tend to be quite rare compared to other methods. The benefit of private sales is the money saving feature. You won’t need to pay as many fees and the sale can usually be done fairly quickly.
Online property websites – Again, online property websites are largely used to sell houses, but some do offer commercial properties too. These are pretty common compared to private sales, but there’s also a lot of other business owners using them to find commercial properties so competition is high.
Auctions – Commercial properties sold by auction can come at great, low prices. However, you do need to consider the auction fees too. It’s also much riskier to buy commercial property through an auction as usually you won’t see the property before you buy.
Commercial property specialists – Just like estate agents, commercial property specialists have in-depth knowledge of the industry, which means they can guide you through the process. There are fees involved, but you’ll find the biggest choice of commercial properties via this channel and many come with very reasonable rates.
So, as you can see, there are a lot of places you can look to find the perfect commercial property opportunities. Ideally, you’ll want to go through a company which specialises in commercial properties such as GVA Grimley Limited. They are renowned both for their excellent range of properties available and their competitive prices.
Overall, commercial properties aren’t difficult to find, but you do need to have a good idea of what you’re looking for before you start your search. It’s also important to shop around to find the best prices. If you buy the wrong property, you could end up losing a lot of money and struggle to sell if it’s in the wrong area for example.
If you’re not looking into commercial properties, but are thinking of selling your home, read our post on the pros and cons of doing just that.
Katie is a finance specialist with one of the biggest firms in London. From savings to investments, there’s nothing she can’t advise on and she’s here to help spread the word and help you on your way to financial freedom.