When you're investing in a residential property, you'll take stock of the property in full detail before buying. You must do the same when buying a commercial property, but the checklist should be vastly different.
If you've never been through a commercial property purchase before, you can make use of the expertise of a property manager from Ray White Commercial Gold Coast. They'll go through the property with you, looking for pros and cons based on your goals.
Here's what they'll help you find out when you're viewing a commercial space:
One of the first things you'll notice about a commercial space is how big (or small) it is. Offices are generally on the smaller side, while warehouses and industrial spaces are larger. Small offices will be cheaper in terms of council rates, but may not yield as much as a large retail space or a warehouse in terms of rent.
At the same time, a larger property might be more difficult to find a tenant for, but once you get a business the lease term can be as long as 10 years, so you've got a solid income stream locked in. Further, you should know what the market rate per square metre is for the property type you're looking at – your property manager will help you here.
Before you invest in a commercial property, understand what changes are going on in that particular sector. For example, if you're buying a retail space in the Gold Coast CBD, check out how brick-and-mortar retailers are faring right now. If they're struggling to make decent profits, it's unlikely that new businesses will pop up.
At the same time, if you find that retail is booming, there could be more competition to buy the space you're considering, so you'd need to act quickly. Understand your preferred market before you walk into a property.
This is the most similar aspect to buying a residential property – you need to check if anything needs renovating or fixing before it's leased. Things like light fixtures and power fittings are vital to any business. You could also check out the internet connection speed and see if you can improve that by organising connection to the nbn, for example.
If walls need painting or knocking down, bathrooms need updating or the whole place needs to be brought up to fire code, you could have a big extra expense on your hands. Take that into account when you make your offer.
An experienced property manager from Ray White Commercial Gold Coast will be able to help you through the property inspection process. For more information, contact our team today.