Investing in Commercial Property Part Two: How to get Started
The way to start, is to start!
Before proceeding you may wish to read the first part of our investing in commercial property guide – Property with Benefits.
If you are reading this article then I assume that you are interested in investing in commercial property. The most important thing to share with you is that it is really important to undertake a great deal of research before embarking on the journey of investing in commercial property, which can, and often is a fantastic investment to make.
Now more than ever it is vital to understand the asset you are seeking to buy. Generally speaking it is a sensible move to invest in a geographical area you know well. If it is a retail shop, do people go there, is it in a popular location, and is the occupier selling what people are buying? If you are not already familiar with an area that you are considering, then spend time there and assess for yourself what the footfall is across different times and different days.
If you are looking to purchase a piece of land, find out what the prospects for development and planning are. Critically, what utilities are available and if not, what are the costs of providing them? We have experienced many great schemes failing to get off the ground because of the absence of utility connections, or costs associated with providing them.
If you are looking at an office building, then conduct some research to see if its accommodation that companies still want? Are these lettable if the tenant should leave? The Pandemic has changed much of the landscape, and changes such as hybrid working and working from home may now be with us for good. If you have seen an industrial unit that you think has potential, then find out its age and is it ‘obsolete’?
There are so many factors involved that there will not be a one size fits all solution. It would be for the individual investor to decide what they want and what they can afford. However, the real key is to fully understand what you will be buying as well as the pitfalls of doing so.
If you would like to speak to me, or one of the team to support your property investment then feel free to get in touch for an informal chat by clicking the link below.