Eight things to consider when buying commercial property

Did you know purchasing your own commercial property can often be much more cost-effective and flexible than renting? Yes, really!

While many businesses choose to lease their office space, buying outright is usually a much better option for growing firms, offering controlled payments and greater freedom.

So, whether you’ve used lockdown as a time to plan and prepare for a leap onto the ladder, or you’re looking for a change of scenery after working from home, we’ve rounded up eight things you should consider when purchasing commercial property.

1. Location, location, location

You wouldn’t purchase your own home without paying much attention to the location, right? So, you should follow the same principle when viewing commercial property.

Will you be holding regular meetings with clients on the premises? Then a spot in the town centre with plenty of parking might suit you best. However, if most of your dealings are done remotely, an out-of-town location may be a more cost-effective solution.

2. Think about parking

As with the above, it’s important to keep the needs of your team members and clients in mind when searching for that perfect space. On-site parking may not be a deal-breaker, but if there isn’t much in the way of public transport around the area, visitors will need somewhere safe and cost-effective to leave their vehicles.

3. Flexibility is key

If all goes well, your business is likely to expand and change during the time you own the property. Unless you plan on moving every time you grow, you’ll need to look for flexible commercial premises that can adapt with you.

4. Do your research

Time spent researching is never time wasted when it comes to commercial property. Look into property trends in the area, anything that could hinder your future plans, or anything that could devalue your property in the future. It’s crucial to know all you can about the property and area before diving in.

5. Can you let your space?

While it’s important to buy a property that your firm can grow into, you also don’t want to be paying for space you don’t use. The solution? Letting any extra offices or breakout rooms on a short-term basis will keep your costs low and your property full.

However, you’ll need to check this is allowed under your mortgage agreement.

6. Don’t skimp on the survey

While a basic survey will give you some insight, it’s recommended to have a full survey carried out on the premises before signing on the dotted line. A more in-depth check give you specific details on any snags or issues, allowing you to move ahead with the purchase with confidence.

7. Think about the money you need right now…

Unlike a residential property, you’ll need to put down a large deposit – often 40-50 per cent or more of the value of the premises. When budgeting for the months ahead, be sure to factor not only this, but also hidden costs such as solicitors’ fees and surveys into your plans before approaching a lender.

8. …And in the future

Lenders may ask to see a detailed business plan before approving your mortgage, but even if they don’t, it’s important to plan in advance when it comes to money matters. As the owner of the commercial property, you may be responsible for any maintenance issues, ongoing costs and long-term upkeep. Try and budget ahead to avoid nasty surprises later down the line.

If you’re considering purchasing commercial property and need advice or guidance, our team are here to help. Get in touch on 01642 607607 or enquiries@brownscommercial.co.uk.