Investing in a commercial property is like starting a new business. You have to research the market and the property to ensure you are making the right purchase. What’s more, you have to enter the industry at a time that is right for you and your objectives, and do so with a discerning eye for a lucrative property!
But, before you enter this exciting industry, you have to make a few imperative considerations, just to make sure you are ready to take this thrilling plunge!
Let’s take a look at some of them below:
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Is it litigation-free?
The property should be litigation free. If not, the best construction lawyer will help you renegotiate the deal or get out of it if it is unsuitable for you.
Is the property in a good location?
You already know it: location is key in real estate, and what looks like the world’s best spot today could be a real bust tomorrow. You have to analyse business trends in the area to ensure it is suitable for business, and this includes everything from past history to area connectivity.
Is the physical location worth the purchase?
Naturally, you don’t want to build a commercial property in an area that isn’t suitable for commercial ventures (think giant hills!), so be sure that it is suitable for business ventures.
What businesses can use the property?
There are different land requirements for different businesses, and so it is important to know the legal use of the property before you buy it as it may be impossible to lease to a particular business wanting to use it for an unsuitable application.
What are the limitations to modification?
There may be modification limits attributed to your potential purchase. This can, unfortunately, make all the difference regarding your future plans, so be sure on the modification details and ensure you can actually use the property for your application.
Does it suit your budget?
As with any life-altering investment, you have to ensure you have the budget for it before you buy! You must determine your budget allocation regarding the property price as this could ultimately cancel out purchasing it in the first place if you are unable to secure the deposit – you will just have to start your search again!
Is it possible to lease the property?
You may be purchasing the property for your own commercial enterprise or looking to lease it out to another business. If you plan to lease it out, you need to be sure of any restrictions regarding leasing the property, just to ensure you don’t get stuck with a property that you can’t actually lease to your ideal business.
Does the area have potential?
You may want to look toward buying in an area that will soon become a hit with investors, as this could potentially raise the property’s value in the future.
What support is available?
How many years does the property have on it? And, if it has many, when was it last renovated or updated? Does it have the appropriate amenities to work in an enterprise? Is there disability access, parking, public transport, roads and other imperative elements available at your disposal? These will all make an integral difference when it comes to choosing a property that is suitable for ongoing commercial ventures, and will continue to be a lucrative investment as time goes on!