5 Things to Consider When Choosing Commercial Property
There are several factors you need to consider before leasing or buying a property for your business. It’s important to plan your financing, research the area, and understand any regulations or building requirements. Here some areas to think about when choosing the perfect property for your business needs.
The three most important factors in commercial property are location, location, location. Think about the price of the area and its market potential. The area where you choose to base your business depends on the needs of both your clients and your employees. Are there good transport links? Will the salary be able to compensate staff for the cost and time they spend commuting? Is it in a convenient location to suit your key demographic? This also depends on the service you provide and the extent that you rely on local business.
It’s a good idea to get some financial advice to help you budget for your new commercial property. Ensure you have the cash flow to cover all costs. You might be entitled to financing, do your research into different funding options. A new business or start-up should watch their spending carefully, if not yet well established. Come up with money saving strategies. Choose a building near central amenities and transport, but not on the main road, to save on rent or mortgage payments. Weigh up your costs and find a balance.
Rent or Buy
Consider the advantages and disadvantages of both. If you can afford it, buying will save you money in the future. If you’re only just starting out, perhaps a short-term lease would be better. Think about timeframes, and how long you plan to stay in that particular location. It’s always best to get a professional opinion. If you’re looking to invest in commercial real estate, seek advice from commercial property experts like KZB Real Estate.
Before you buy anywhere, get informed, and make sure the building is compliant with all government building regulations. Conduct a full survey and check for any maintenance that might need doing. Ensure the building meets all safety regulations, and do a risk assessment of any potential hazards. Types of risks could include harmful substances like asbestos or structural damage. Have certified professionals check all plumbing, electrics, and heating. Any building errors could potentially put stakeholders at risk as well. If you need to, consult a commercial construction company as they may be able to give you some advice.
Return on Investment
Ideally, you want to ensure that you’re making a good investment for the future. Do some research into the property market. You could also speak to your real estate agents about this and get their advice. If you plan on selling the property in the future it would be nice to make a profit on your original price. Calculate potential earnings as well, to ensure these will cover the cost of your rent or mortgage payments. It’s common not to break even in the first year but try to make realistic growth and revenue forecasts for the future. Secure your place on the property market.