Buying a commercial property is a major undertaking and you need to be sure that you choose the right property to invest in. Selecting the wrong investment property can end up costing you a lot more money in repairs and upkeep down the line. What’s more, if you choose a property in the wrong area or in a location that there is no demand for, you could find it very difficult to make a significant income from your new commercial investment property. 

Depending on the type of property you are buying, you will need to pay attention to different aspects of the property. For example, if you are purchasing a large commercial property such as a warehouse or a factory, it’s wise to check that roof walkways have been installed to make it easier for contractors, repair staff and construction teams to access the roof with ease. On the other hand, if you are purchasing an office block for lease, you will need to ensure that the utilities are in place, making it easier for a client to move in quickly and start paying rent. 

Let’s take a look at a few things that you should be on the lookout for when you are buying a commercial investment property. 

Location, Location, Location

One of the most important things you need to consider when you are buying a commercial investment property is where it is located. You need to choose an area where there is enough demand for your property type and ideally, somewhere that the market is not overcrowded. For many investors, up and coming areas can are also the best value for the money as while the potential is coming soon, the prices are still relatively affordable. 

Assess Ongoing Costs

When you are choosing a commercial investment property, it’s important that you not only assess the rent and utilities each month but also any additional costs associated with the building. For example, you may be required to pay parking fees, insurance, repairs and maintenance costs and a range of other fees. You may also need to pay for the premises to be fitted out, utilities to be installed and other such costs. Understanding the ongoing costs will help you to prepare for the months ahead with more certainty. 

Consider The Building Use

Some commercial buildings can only be used for certain purposes. While this is not always the case, it does happen, so it is important to check exactly how you can make a profit from your building before you sign the dotted line. For example, while you might be able to have office-leasing tenants right away, you might need to meet further health and safety requirements if someone leased your space to use it as a restaurant or cafe. Having a good understanding of the dos and don’ts of the property you are investing in will ensure you maximise your ROI.

Make Sure That You Choose The Right Commercial Investment Property

Choosing a commercial investment property can take some time but it is a decision that you need to be sure that you get right. Selecting the right property will set you up for success moving forward and make sure that you get the best possible return on your investment. Be sure to spend some time looking at the different areas where properties are available and conduct thorough market research for each location before you make a final decision. Understanding exactly what you are buying and where you are buying is vital for your success moving forward. Taking the time to plan in advance, you can be sure that you will make the right call with your commercial property investment.