Investing in your first commercial property is a big decision and it’s one which shouldn’t be rushed into. There are a lot of things that can go wrong which could end up significantly draining your budget if you aren’t careful.
To help you ensure you make a wise investment, it is a good idea to learn all you can about the real estate market and perhaps even take a Than Merrill real estate class. Here you’ll discover some of the top things you need to know before buying your first commercial property.
Are you buying for yourself or as a business opportunity?
Who you are buying the property for will make a big difference to hat you should look out for. If you’re buying it for your own business, you’ll want to make sure it comes with all of the facilities and the space you’ll need. If you’re buying it to rent it out however, you’ll need to look at what facilities would be beneficial for the businesses you’ll be targeting.
Generally speaking, buying commercial property as an investment is a little trickier than buying it for yourself. However, there are companies such as GVA Grimley Limited who can help by providing the very latest market movements and research. This can show you exactly where there’s money to be made and which types of property are going to prove more valuable than others.
Don’t ignore location
Regardless of why you are investing in commercial property, one important factor you should never ignore is its location. For your own use, you’ll need to take into account how easy the building is to get to, both for potential customers and employees. For rental purposes, a property in a sought-after location is guaranteed to deliver much higher returns.
Consider nearby businesses
One thing you might not think to check is the property’s neighbours. Don’t just look at direct competitors, pay attention to how successful other businesses are in the area. If the majority tend to be very successful, that’s a good indicator that you’re buying in a good area.
Also do a little research to see how many businesses have been bought and sold in the area and how frequently. This will give you some indication of how long businesses typically last there.
Overall, these are just some of the factors to consider when buying your first commercial property. By taking the time to do your research and really ensure you’re choosing the best property, it will pay off a lot more financially.