Choosing the right commercial property is essential to the success of your business. It’s important to consider a range of factors, from location and size, to accessibility and cost. In this blog post, we will explore the top 5 factors to consider when choosing a commercial property.
1. Location
The location of your commercial property is one of the most important factors to consider. You need to ensure that your property is easily accessible to your customers, employees, and suppliers. You should also consider the local amenities, such as public transport links, parking facilities, and nearby shops and restaurants.
2. Size
The size of your commercial property will depend on the needs of your business. You need to ensure that the property is large enough to accommodate your operations and any future growth. However, you don’t want to pay for more space than you need. It’s important to carefully consider your current and future space requirements.
3. Condition
The condition of the commercial property is an important factor to consider – especially in the current times where the cost of building materials and skilled labour is so high. You need to ensure you have a good understanding of the property’s condition and the costs involved in any repairs that are required. A building survey, such as a Pre-Lease Assessment or Schedule of Condition (SoC), can help you to identify any potential issues or defects that may need to be addressed. An SoC can also help to limit your liabilities when exiting the property by providing evidence on the state of the property at the time.
4. Cost
The cost of the commercial property is also an important consideration. You need to ensure that the property is affordable and doesn’t put a strain on your finances. You should also consider any additional costs, such as utilities and potential maintenance, when calculating the overall cost of the property. Advice from a Chartered Surveyor can assist with the latter; a Schedule of Condition can identify any issues present when you move into a property, and a Planned Preventative Maintenance programme can help to keep issues at bay.
5. Lease Terms
Finally, you need to carefully consider the lease terms of the commercial property. You should ensure that the lease is fair, legally sound, and protects your interests. You should consider factors such as the length of the lease, rent increases, and repair and maintenance obligations. Whilst the majority of leases will include clauses around terminal schedules of dilapidations, many will also allow for interim dilapidations inspections. This is something that tenants need to be particularly aware of as it may catch them off-guard if they fail to keep up with maintaining the property.
In conclusion, there are many key factors to consider when choosing a commercial property. A qualified chartered surveyor can help you to assess the suitability of a commercial property and may even allow you to negotiate the terms for your lease agreement. For more information on our commercial property services, please get in touch.
