As leading commercial property estate agents, our experts are quick to share the benefits of commercial property investment. Whether purchasing a retail building, office, warehouse or mixed-use property for your business or a tenant’s, commercial property investment can be a fruitful endeavour, especially with support and advice from our commercial estate agency!
The long-term lease agreements that are synonymous with the investments our commercial property estate agents facilitate and support ensure safety and stability in what can often be a violate market. When purchasing commercial property for your own business, you’ll gain extra peace of mind, with no need to worry about lease renewals or rental increases.
So, now you’re aware of just a selection of the plus-points that go hand-in-hand with UK commercial property investment, how do you get started? In this blog post, our commercial property estate agents share their top tips for a successful purchase.
Understand the (many) commercial property types
As our commercial estate agency often reminds its clients, not all commercial property was created equal. With this in mind, there are many commercial property types to explore, some of which will be more fitting investments than others.
When buying property for your business or a specific type of commercial tenant, there are several factors that will help you decipher which commercial property type is the right investment for you, your needs and your budget. Is the property future-proof i.e. able to be expanded? Could it be flexible as your business needs change? Are there good transport links and/or parking facilities available to you? Is sub-letting an option? Is it the right fit for your existing and potential customers?
By answering all these questions, our commercial property estate agents can help you find the commercial investment that suits your unique requirements.
Aim to purchase within budget
While this top tip is often easier said than done, purchasing a commercial property within budget will ensure it’s a manageable and profitable step in the right direction for you. Your budget however should include more than just the cost of the commercial property you are looking to purchase.
As our commercial estate agency will advise, you should account for the cost of professional services, Stamp Duty, repair/refurbishment, maintenance and operational expenditure, environmental compliance, mortgage fees, and waste management in your budget.
When calculating your budget, you should also consider the return on investment (ROI) you intend to make with the commercial property purchase. As a rule of thumb, you should aim to make a minimum cash return of at least 10% to make the purchase worthwhile.
Remember – location is everything!
Whether you are a B2B business or a customer-facing operation, the location of your commercial premises will prove vital to your short- and long-term success.Â
With more than two decades of experience connecting clients with the commercial properties they want and need throughout Staffordshire, Cheshire and Shropshire, our commercial property estate agents have a solid understanding of the local landscape as well as the locations that will be the best fits for your first or next investment. But why is location so important?
The perfect location depends on the type of business you are or the tenant you’re looking to attract to your commercial property. Your location should also help you be as visible as possible, even in the presence of local competition, and harness the customer demand that keeps your business growing. While there are benefits to investing in an established and already desirable area, making a commercial property investment in an up-and-coming area also offers its advantages.
Our commercial estate agency can assist you in identifying key areas for customer and tenant demand when making an investment in Staffordshire, Cheshire or Shropshire.
Invest for the long and short term
It’s all too easy to get swept up in the short term gains you’ll make from commercial property. To help you make a sound investment however, our commercial property estate agents always recommend thinking beyond the short term. That’s where a bit of local knowledge also comes in handy!
The local knowledge our commercial estate agency shares will not only enable you to find the right location. It’ll help you understand the values that every local property market has so you can make a better investment. Our commercial property estate agents stay up to date with the current value of properties within the area, applicable tax rates and reliefs (including Capital Allowance, Business Premises Renovation Allowance and Land Remediation Relief), interest rates, and rental values so you don’t have to!
We’ll also help you gauge the flexibility and versatility of the property itself as well as the strength of its surrounding location to ensure it delivers results for your business or your tenant even as market trends evolve.
Enlist professional help from us
Our insights into the commercial property market don’t end there. Our commercial property estate agents deliver a long list of professional services to ensure the investment you are about to make will really work for you.Â
Alongside our commercial property portfolio, property auctions and property management support, our commercial estate agency is proud to provide commercial and residential valuations, development appraisals, Capital Gains Tax help, and building insurance assessments.Â
Whatever stage you are currently at, our commercial property estate agents are here to help. Contact us today to discuss your requirements and become one step closer to a successful commercial property investment.
