Are you considering entering the commercial property market? Before you sign the papers for your new property, keep these tips in mind:
1. Learn as much as you can about the local economy of the areas you are interested in before you narrow your search to specific neighbourhoods and properties. You will need to know details, such as residents’ average income and average employment rate for the region. (If you are interested in a property located close to a hospital or university, you will pay a higher rate, but it will be easier to find a buyer if you decide to sell later on).
2. Consider your present business needs, as well as how you foresee your business expanding over the next several years. Make sure the building has a capacity for expansion, if necessary. You may want to consider leasing some space in the building to a tenant to generate some cash flow until your business is ready to expand into a larger space.
3. If you are looking at an older building, you will need to consider the cost of repairing and/or upgrading the electrical system or the roof. Add this expense to your property acquisition budget.
4. Take pictures of the properties you are shown. It can be difficult to remember the features of each property if you have seen several options, and you will want to have a visual record of any defects which you can bring to the seller’s attention to negotiate a better price
5. Find a lender in advance. That way you won’t lose out on a property you really want to another buyer who has arrangements in place.
6. Work with an experienced commercial property agent. Your estate agent should be able to recommend an experienced lawyer if you don’t have someone in mind. You will want your closing to proceed smoothly and without any undue delays.
