Investing in commercial property can be a highly rewarding decision for businesses, but like most business choices there is also risk involved. Commercial real estate can offer a complete variety of options for a business from retail space, offices, cap parks and warehousing space and the yields tend to be higher and the tenants will likely have building repairs and insurance included.
But as mentioned the can be errors made when buying commercial property and more likely than not, investors and/or business owners won’t be familiar with some of the processes involved when making a purchase.
With commercial property being valued differently to residential property, there are many more processes involved before completing the acquisition as the value of the property is directly related to income and the yield of the business. Which makes the buying process an essential part of a business’s move or expansion.
Here’s a look at four mistakes to avoid when acquiring a new commercial property:
Footfall
If your property is going to be used to sell a product or service to the general public, footfall in an essential part of the buying process. Making sure the business gets and much exposure as possible. Depending on the service being offered, you can select a high footfall position on the high street or in a shopping centre to encourage impulse shopping. But if you’re a niche company you can also risk a lower buying price with less footfall, but advertising location and have potential customers specifically visit the store.
Naturally the higher the footfall the higher the buying price, so working out how many customers you need on average could save you a lot of money. Think about the high street vs retail parks for example.
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