If you are thinking about buying a commercial property for your business to operate from, please take your time to consider it carefully. Some of the many things to consider include:
Location: Does the location match what your business is trying to achieve? Think about how easy it is to get to, how visible it is, how close it is to your suppliers and customers and what kind of local infrastructure is around.
Property Condition: Make sure you check out the property in detail, all aspects of the building and sheds – the roof, foundation, electrical and plumbing systems, heating and cooling setup, and any environmental issues that might be lurking. It’s smart to hire a professional to do this and point out any potential problems.
Intended Use and Zoning: Check to ensure what you want to use the property for aligns with the local zoning rules. Double-check if there are any restrictions or limitations that could throw a spanner in your plans or future growth.
Size and Layout: Does the property give you enough space for what you’re aiming to do? Think about things like how the layout is set up, the ceiling height, where people are going to park, how goods are going to be loaded and unloaded, and where supplies are going to be stored.
Accessibility and Parking: Can your employees, customers, and suppliers easily get to the property? Think about if it’s close to major roads, public transport, and if there’s enough parking. Having enough parking is a big deal, especially if your business needs customers to come over or if you have a large number of employees.
Market and Demand: Take a good look at the local commercial real estate scene. Figure out how much demand there is, how many empty spaces there are, how much rent usually goes for, and whether the area seems like it’s going to grow. It’s also smart to check out how stable the local economy is and what kind of future plans there are for development.
Financial Stuff: Crunch the numbers on the property’s finances. Think about the price tag, how you’re going to pay for it, what you might get back in return, how much it’s going to cost to keep the place running (like utilities, maintenance, insurance, and property taxes), and if you’re thinking of renting it out or developing it down the track, how much rent or uplift you might be able to receive.
Legal and Rules: Check if you need any permits, licenses, or certificates for what you want to do with it. Also, dig into any legal or regulatory stuff that might impact your plans.
Future planning: What will you do if your business gets bigger or smaller? Ultimately, is it a good idea to purchase or is renting a property better?
Environmental: Check out any environmental risks that could be connected to the property, like old fuel tanks, dodgy soil, dangerous materials, or if it’s close to any environmentally sensitive spots. Best to bring in experts to do their checks.
Getting Expert Advice: It’s a good idea to bring in some experts who know the ropes when it comes to commercial property. Get yourself a real estate agent, lawyer, accountant, and property inspector who have experience in this area. They can help guide you through the process, do the leg work on research, and help handle any issues that arise.
Just remember, when you’re buying a commercial property, doing your homework is key. Look closely at all the different aspects to make sure the property fits with what you want to do and sets you up for success.