If you’re a small to medium business in the process of expansion, investing in a new commercial property could be your next step. Whether it’s for offices, manufacturing, or general-purpose, investing in a new building can enable you to expand, support, and grow your business.
The needs and requirements for every company will naturally differ, but below, we outline a few general pointers to keep in mind before buying a commercial property.
Choose the Location Carefully
Like buying a home, choosing the right location is key. To determine the best place for your new property, consider things such as whether you’ll be holding client meetings in the building, how accessible it is for staff, and also the suitability of the surrounding area to your business. If the appearance and feel of the building are important to acquiring clients, then you’ll want to consider all these options first. Town center locations, for example, will be ideal if you will frequently host business meetings, events, and have several staff members or teams working there. It would be a good idea to find commercial estate agents who can help you with searching for the best property for your situation. They will be able to gather all your requirements and scout out available properties in your desired location so that you are happy with the results.
Review Interest Rates
One of the first things to do before you conduct your search is to find the best deals on interest rates by reviewing the market and evaluating your mortgage options. If you’re new to this process, it may be advisable to hire a mortgage broker or enlist the help of private lenders like diversefundingsolutions.com.au to find out whether you qualify for financing or loans.
Consider Flexibility
As your business develops, its needs will change too. When looking for commercial property, it is, therefore, a good idea to find one that is flexible and will accommodate the growing demands of your business. This includes capacity for expansion, or conversely, opportunities to rent out space should you need to scale down.
Evaluate the Physical Condition
It’s important to do a thorough physical examination of the building before you make an offer. Depending on how new the build is, there may be hidden issues such as asbestos, lead, or mold, so it’s worth getting it surveyed and checked out.
Legalities
It can be easy to overlook some of the legalities of buying a commercial property if you’re focusing a lot on the interior and design of the space. Issues such as zoning laws, building codes, parking regulations, etc. should be reviewed carefully as they could affect your business upon opening if you’ve not done your research ahead of time. The last thing you want is to set up a shop, only to find out you’re not allowed to make any changes.
Think Ahead
Last but not least, it’s also sensible to think ahead in terms of financing and property value. Whether you intend to stay there for 3 or 10 years, it’s important to consider any infrastructural changes you may want to make, what the predictions are for business growth, and whether the value of the property might change.
Buying a commercial property can be an exciting move for your business, but there are multiple things to consider before taking that leap. Heed the tips above to help take your business to its next stage of growth.
Veeramachineni Lalitha
I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. My experience details : Linkedin