Need to lease a commercial property for your growing business? Or are you ready to invest in a commercial property? Whatever the reason, delving into the commercial property world as a tenant or a buyer is exciting – but also daunting. With so many rules, regulations and processes to follow it’s easy to become lost from the early stages – even if you’ve done it before.
From “I want to buy a commercial property – but where do I start?” to “how do I rent a commercial property for my business?” we’ve had many questions about the buying and letting commercial property process over the years. And we realise that it can be confusing if you don’t get the right advice.
That’s why in our commercial property guide we’ve chosen to share the 9 steps involved with buying or letting commercial property. As you will see, the process is similar for both situations…
Step 1: Identify your requirements
The first step is to ensure you’re clear on what you want to buy or let.
If you’re looking to rent a commercial property or buy a property for your current business operations, think what the property must offer your business – on a very practical level.
We recommend considering:
What size does the property need to be to comfortably accommodate all your employees? Do you have any special equipment you need to make room for? Do you need space for meeting rooms, a reception area – even a product-display room?
Location & connections
Is location important to your business’ success? Where do you need to be so you’re geographically in reach of your target demographic? Which location is best connected for your employees? Is it better to be out-of-town or central?
What facilities will benefit your business? From your obvious “non-negotiables” like employee toilets to your “desirables” like car parking be clear what you can and can’t compromise on – as it tends to differ from business to business.
How much do you want to spend on your commercial property? When investing, this is usually easier to answer as you’ll have a top budget. However, even if you’re looking to rent, it’s important to see commercial property as an investment that’s vital to business productivity – and that you can generate a return from. Not a cost.
Freehold or leasehold
Investors tend to opt for freehold properties. However, there’s no hard and fast rule whether you opt for a freehold or leasehold property. Weigh up the pros and cons in line with your objectives – whether they be business-orientated or strictly financial. If you’re not sure, seek advice.
Step 2: Sourcing the property
After you’ve outlined your requirements, start your commercial property search online.
Our website includes 360° photo-panoramas imagery, detailed floor plans and particulars – so you can clearly filter through properties that match your criteria.
Then, arrange viewings with the agent.
Step 3: Take acquisition advice
Whether signing a lease or buying a commercial property, it’s a long-term financial commitment. Therefore, expert advice is a non-negotiable – especially when you’ve reached this stage.
Speak to a commercial agent to get a measured opinion of the property you’re about to invest in. At Mounsey Chartered Surveyors, we will inspect the property of your behalf – giving you valuable insight such as market value and possible rental return.
We’ll also assist with any surveys – making sure you have the most accurate information to go ahead with the lease or purchase.
Step 4: Make an offer
Confident this commercial property is right for you – and your business? If you’re debating what figure to offer, we can give you measured advice.
Step 5: Negotiate price & agree on terms
As with all property purchases, you may need to negotiate to reach a figure that both you as a buyer and seller feel comfortable with.
On the renting side of things, you’ll need to agree to the terms of lease that both landlord and tenant are happy with.
Step 6: Liaise with third parties
Once the vendor accepts your offer, it’s all systems go. This often means there is a lot of paperwork and fine details to organise.
We can liaise with solicitors, pensions, banks, surveyors and any other third parties on your behalf. This not only minimises your stress but ensures that everything will be done accurately and to best practice.
Step 7: Complete the purchase or lease
If you’re buying a commercial property, you will need to exchange contracts – much like you do in a residential property situation.
You will do this once both the vendor and yourself, as the buyer, are satisfied with the terms of the contract. You must also confirm and agree:
- the results of the survey with your solicitor
- any mortgage company valuations and inspections
- any conditional planning permission is granted
- the necessary money is available to confirm the purchase, such as a deposit
For those leasing, it is a similar completion process.
It is recommended you have a surveyor make all the necessary checks to the building. Then, both tenant and landlord must confirm they are happy with the contract. You will also need to confirm the property holds the relevant planning permission along with ensuring the necessary money is available to complete the transaction.
Step 8: Arrange fit-out, repairs and any works
Post-completion means you can start to get your commercial property ready for business. Often a time-sensitive process, it’s likely you’ll want to move in and achieve “business as usual” as soon as possible.
From office fit-outs to redecoration and repairs, we can help you arrange any required works – getting your commercial property swiftly fit for purpose.
Step 9: Safeguard your investment
After all your hard work, you’ll want to ensure your property makes you money – either through providing a great place for your business or as a commercial landlord yourself.
Commercial landlord property advice
You have a lot of responsibilities as a landlord. Even before a tenant moves in, you’ll have to search for a tenant, conduct identity checks and ensure your paperwork is watertight – if you don’t want to land yourself in financial trouble.
However, you’re not expected to do all this yourself. And the reality is it’s not very smart to take a DIY approach to commercial property management.
Instead, we can help you safeguard your investment – and maximise your profit potential. We can help with the following:
- tenant search
- tenant vetting
- rent collection
- rent review
- lease renewals
- contract negotiations
- and much more…
Reselling your commercial property for profit
If you’re planning on restoring or repairing a commercial property for reselling purposes, make sure you get expert advice on the best way to do this.
Making a profit is not always as easy as it seems – yet speaking to a commercial property consultant who thoroughly understands the market condition will maximise your chances of a high return.
Becoming a tenant
For those moving into a commercial property on a lease basis, we can act as your commercial agent – helping to represent you throughout your lease with your landlord. From dilapidations to rent reviews, we will act in your interest so you get the very best experience from your commercial property lease.
Looking to buy, let or invest in a commercial property?
Filter commercial property options to meet your requirements – with our easy-to-use property search feature.
Expert commercial property advice
Has our commercial property guide got you thinking about acquiring or leasing a commercial property in the near future?
Speak to us to see how we can help you – and discover how our services can add value to your long-term business plans.
To find out more call us on 01782202294 or email us at firstname.lastname@example.org.