If you are considering buying commercial property in the near future, it is important to understand the process from start to finish. Across the UK, commercial property accounts for an eighth of the property market – around £483 billion.
So, how can you prepare to buy your first commercial property in a competitive market?
Overall, commercial property is a diverse entity, with lots of opportunities no matter your business structure or needs. Without the correct initial research and with so much choice, it can be difficult to find the right property for you.
The areas of the commercial property market that are most popular and invested in include:
- Offices – lots of businesses flock to city centres, so office blocks are a great investment if you are planning to rent out the space.
- Retail (shops, supermarkets, shopping centres) – for opportunities to rent out to big brands, retail property on a bigger scale can attract big names in the right areas.
- Industrial – warehouses and factories are in high demand as the UK grows it’s industrial and engineering industry.
- Leisure – properties include restaurants, pubs, cinemas and hotels.
There are also other interesting commercial opportunities such as schools, automotive, student property, petrol stations and the public sector, depending on your plans for the space.
Finding the right property to buy comes down to three factors: location, timing and market. Buying a prime property in the right location at a high point in the market, during a period of market saturation, can mean a great expense for you. So, it could be a case of waiting for the right time and a market low in order to still benefit from that prime location.
Looking at the trends in your ideal location is the best way to determine when this ‘ideal’ time will be. If you’re not sure, then simply speak to an expert property agent to make your commercial purchase a simpler process.
An important element to consider when it comes to buying a commercial property is the business rates that it will incur each year. Business rates are a tax on any non-domestic building.
The rate is decided by multiplying the rateable value of a commercial property with the Uniform Business Rate. Using this, the local council will provide you with a business rates bill each year. In some cases, there are exemptions or reliefs, but you have to apply for them individually and in most situations, it is best to seek specialist professional Business Rates advice.
For some, business rates can be a serious issue for their business and that is why many have called for a reform of this process. But for now, business rates will remain a major consideration when it comes to buying a commercial property as it will impact your businesses ‘bottom line’ each year.
In the modern world, buying commercial property is not as straightforward a process as you may think. With so many considerations, having the advice of experienced property agents is important to ensure that you are making the right decisions moving forward.