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Commercial Property Tips: Things To Consider

You may already be familiar with the process of purchasing a property if you are a homeowner; however, when it comes to purchasing a commercial property, there are many other things to consider.

The property market can be challenging, with the purchase price for places often having to be heavily considered alongside other important factors, such as location and lease options.

Ultimately, this quick blog will point you in the right direction of what to consider when purchasing your first commercial property.

Consider The Amount of Lease Time

When it comes to commercial property lease agreements, they may be for around 10 – 15 years as opposed to residential leases, which can range from a few months to a year. Therefore a commercial lease is a long-term investment that, in turn, can generate a good long-term cash flow source.

The main downside to factoring in with a commercial leave is the amount of risk associated with that large amount of time; with the changing economic landscape, you must ensure that your business or any business leasing your premises can sustain itself as you do not want to have your property vacant and draining money for any period.

Emergency Services You May Require

Once you have purchased a commercial property, you will be solely responsible for a whole host of elements such as waste management, all the electrical wiring within your facility, and the bricks and mortar of the property alongside the water pipes. For this reason, it is important to ensure that you have the contact details of reputable companies that can help you in case of emergencies.

Do you know whom to call if you find a blocked drain within your property? Who do you have on speed dial if you find that the lights are suddenly refusing to turn on? When it comes to life, things can happen unexpectedly, so it is important to be ready should the unexpected happen. By having trusted professionals on hand for emergencies, you will stop any ongoing costs associated with having to re-repair or continue working with any building faults.

Although the requirements of residential properties can be similar to commercial properties, it is equally important to be prepared for emergencies. After all, it may be your staff or tenants that are directly affected should anything happen.

Type Of Commercial Properties

There are several different types of commercial property that you can invest in, such:

Although each of those spaces may have a dedicated purpose associated with the premises, there is a potential to change what the place is used for. For example, you could turn a school premises into an office setting.

Alternatively, you may transform an office space into a coffee shop. To do so, be sure to apply for the correct planning permission and correct licensing to run the business.

Location, Location, Location

One of the most important things to consider when purchasing a commercial space is the location in which it is. You may be looking for the perfect location close to your home to cut your commuting time or to keep it within your main operational area.

By choosing a location that you are already familiar with, you can gauge the level of success your business will have. This may be through understanding how well connected your premises are in town locations, or through understanding the public transport links within the area. Remember, you absolutely require your customers to make an in-person appearance.

Alternatively, you could choose to invest in an area that has the potential to create a return on investment several years down the road. This option is often more affordable as this type of location is often cheaper due to a lack of amenities, which provides a great opportunity for your business to lean into the potential need and demand.

A key step to take is to heavily consider the existing businesses in the area to assess the level of competition your commercial property can have. Another consideration is the public demand for a product or service within the area to ensure your business is successful.

How Will You Invest?


There are two main ways to pay for your commercial property. You can do so via a direct or indirect commercial property fund, and each option has its advantages and disadvantages.

Direct commercial property funds mean that the fund owns part of the property outright, meaning that you can receive a portion of the rent from tenants within the space, although if the place is empty, you will receive nothing.

An indirect commercial property fund means you own shares of a company that invests in property. Therefore you are linked to a commercial property, but not so directly as often the risk is more spread across an entire portfolio of real estate properties.

Whichever method you choose entering into the world of commercial property is not a step to undertake lightly. Hopefully, this blog has helped you to consider new angles and make a more informed decision about this type of business.

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