If you're thinking about buying a commercial property in the near future, there are a lot of things you'll need to think about. This can include the specific kind of commercial space you want (such as an apartment building to rent out to many different tenants or a small-business office) or the amount of demand in the local market, but there's more to it than that.
The following issues should also be considerations when it comes to making your commercial purchase:
These days, multi-use commercial spaces are increasingly popular, but many are not set up that way initially — so you might have a big decision to make, according to Finance Corp. If you're going to be renovating your new commercial property, you have to think about whether you will keep it as, say, solely an office space or if you will add some features that might make it attractive to a number of different kinds of tenants.
The good news for commercial real estate owners is that often, business tenants will be the ones who are paying many of the bills, from utilities to council fees and insurance. However, you might encounter some who want you, as the property owner, to pay for upkeep and repairs. This is something you might need to think about, as agreeing to do so can be costly, but it could also be key to landing a reliable tenant who will stick around for years.
You may often find a property that has plenty of great features and ticks a lot of your ownership boxes. But sometimes, everything about a property can be right except the location. Investopedia notes that you might have to really examine the ins and outs of the location — from where it is on the street or in proximity to major highways to what kind of neighbours you'll have — to ensure the price makes sense.
In many cases, you might want to be a hands-on owner, as long as the property is in close proximity to your home or office and you're a good communicator. However, if you think it might be difficult to manage the day-to-day business of your new commercial property, you might want to come up with a contingency plan. Perhaps a business partner could be put in charge of it, but you might also want to think about hiring a property manager to handle all the daily ins and outs your tenants experience.
It's certainly one thing for a property to look great on the outside. It's another entirely to make sure it has no hidden problems that you won't find out about until the deal is done. The Forbes Real Estate Council advises you do as much research as possible into the property so that when you make the final decision, you'll know you've set yourself up for success.
Whenever you're thinking about buying a commercial property — whether it's your first one or you're expanding your portfolio for the fifth time — it helps to have an experienced real estate agent on your side. At Ray White Surfers Paradise, we can guide you through the many different aspects of the sales process and ensure you get the right property at a price that works for you. Get in touch with us today to learn more.