Things You must Consider When Buying a Commercial Property.
There are many important matters to consider when buying any investment and commercial real estate is no different.
Are you buying to occupy your commercial property or are you a commercial property investor? Other considerations like Council zoning, car parking and exposure require some thought and research also.
Owner Occupier or investor?
If you’re buying as an investor, be diligent, do your research and find out what the market wants, don’t buy a commercial investment property purely based on what you would like in a commercial property when you won’t be occupying it.
If you’re buying as an owner occupier – are you upsizing because you’ve grown out of your current premises? Try to forecast your future growth rate, you don’t want to grow out of your new premises in 12 months time.
Car parking is often overlooked and can become a painful subject for commercial real estate owners – especially where there are large numbers of employees involved. If you don’t have sufficient parking bays you will turn over more staff than Naomi Campbell because their parking fines trump their annual income. As an alternative, ensure you are mindful of public transport options close by such as buses and trains.
Now to exposure. Does your business rely on vehicle or foot traffic to generate business? Spend some time becoming familiar with the area and try to get an idea if the traffic volume is large enough to sustain your business. Local councils and departments can provide you with the actual number of passing vehicles. You can use this info to compare different possible locations.
Always check the property zoning and existing approved property uses with the local council to make sure your current business (and possible future expansions) complies with their regulations. You can’t open a fabrication business in a retail shopping centre.