What to Look for When Buying Commercial Property

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Buying commercial property can be a significant step, whether you’re investing for long-term returns or purchasing a premises for your own business. But finding the right property involves more than choosing a good location or comparing purchase prices.

Here are a few key factors worth considering before making a decision.

Location and Accessibility

Location remains one of the most important considerations in commercial property. Look at how easily the property can be accessed by customers, staff, suppliers and transport networks, as well as the surrounding businesses and future development of the area.

For industrial properties in particular, proximity to major roads and freight routes can have a meaningful impact on how practical the property is for occupiers.

Understand the Property’s True Value

The asking price only tells part of the story.

Consider comparable sales, rental income, lease terms, outgoings and the overall condition of the property. An opportunity that initially appears attractive may become less compelling once these factors are taken into account.

Look Closely at the Lease

For investment properties with an existing tenant, the lease can be just as important as the building itself.

Understanding the remaining lease term, rental increases, options, tenant obligations and the strength of the tenant can help you assess the property beyond its headline yield.

Consider Your Long-Term Objectives

A property should suit what you’re trying to achieve.

An investor seeking stable income may have very different requirements from a business owner looking for a property that can accommodate future growth. Establishing a clear brief before beginning the search can help keep the process focused.

Not Every Opportunity Is the Right Opportunity

Off-market properties and tightly held assets can be attractive, but being difficult to find doesn’t automatically make a property a good purchase.

Experience, research and proper due diligence are essential when separating genuine opportunities from properties carrying unnecessary risk.

Looking for Commercial Property?

Bespoke Commercial helps investors and business owners search for, assess and secure commercial property based on their individual requirements.

Looking for your next commercial property? Get in touch with Bespoke Commercial to discuss your brief.

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