A commercial property is a major asset for your business, which is why so many business owners opt to buy their company premises rather than finding temporary premises to rent. An advantage of investing in a commercial property is that you have a much greater level of control and over how you choose to use the premises and what to do with it – great news if you are planning on expanding your enterprise over the years!
If you have concluded that buying a commercial property is the right step for your business, good for you! Here are some factors to bear in mind to make the best buying decision possible.
Location
Everybody knows that location is everything when starting a company. Firstly, you need to ensure that the location you select provides you with direct access to your target market.
You must make sure that you are not surrounded by a multitude of other organizations that offer similar products and services. It will be impossible to avoid competition completely; however, there is a huge difference between competing with one or two other businesses and competing with 50 other businesses!
Finally, you must choose an area where the value of your property will either remain favorable or where its value is set to increase over the years. Therefore, you are likely to break even or make a profit if and when you decide to sell up in the future.
The easiest way in which to find a commercial property within a specific area is to use a well-known and respected property listings website. If you are relocating your business to Africa, for example, you should visit the Ghana Property Centre for help.
Consider all costs
Do not make the mistake of only looking at the monthly repayment figures for the commercial property finance granted to you by the bank. There are many other costs involved that you need to be aware of and ensure that you can afford to cover. These costs include:
- Rates and levies
- Utilities
- Security costs
- Maintenance and repair costs
Access
Never invest in a commercial property that does not provide customers with convenient parking or off-the-street access. Also, think twice before buying a business property that is not easily visible from the street. If passersby and drivers cannot see your company’s signage, the chances are slim of obtaining new customers this way. As a result, you will likely find yourself having to spend much more on other marketing techniques than originally anticipated.
Room for growth
While you shouldn’t invest in a commercial property that is too big for your business as it currently stands, it is worthwhile to invest in a property that does hold the promise of making room for growth if and when required. If you believe that your company is going to experience a significant amount of growth within the next five years or less, it might make more financial sense to continue renting until that time.
Now that you know exactly what to think about before signing on the dotted line, you will find a commercial property that ticks all of the necessary boxes.
