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Commercial property is advertised through many different channels, largely in the same way as residential property. As a potential buyer you can search for commercial properties via:
- The internet
- Trade magazines and newspapers
- Specialist auctions
- Local and National Press
- Specialist Estate Agents
There are many factors that must be considered before embarking on such a potentially large financial commitment. Any kind of mistake could prove to be very costly in the long run. When researching the commercial property market, it is important to consider the following factors:
The ideal type of property for your business - Compromises will always be necessary in business to a certain extent however your selected commercial premises should be suitable for business purposes.
Does the property offer adequate space, both at the present time and in the foreseeable future? For many businesses, expansion is often a natural progression rather than a conscious one. Many companies purchase a business premises to suit the immediate need without considering the impact of rapid expansion in the future.
Will the business be able to function from the selected premises? On occasions, certain properties may be subject to certain restrictions in respect to the type of business they can accommodate. Will you need to obtain planning permission and if so, how likely is it to be granted?
Location - This is a make or break factor for some businesses. Is the business going to be solely reliant on passing trade? Does the location need to be central or an out-of-town site? Will the preferred location be easily accessible for staff to travel to work? Is the area well served by public transport?
Expenses and running costs - Local Authority charges and business rates will differ from one area to another. High charges and running costs will not only put a strain on the company's finances but could also make future saleability more troublesome.
Facilities - Are there adequate parking spaces available for staff? Is there a kitchen facility for staff? If improvements need to be made, can this be done within a reasonable budget?
Once you are confident that you have found a suitable property for your business then it might be a good time to make an offer. Where a mortgage is required to purchase the commercial property, a written offer in principle from the lender should be in place before an offer is made.
A conditional offer will usually be made after a comparison has been made with a similar property and the price is established as appropriate. Any offer will be subject to a number of conditions such as a full buildings survey and planning permission granted where appropriate.
