A blanket approach cannot be taken when buying commercial property, however, in every instance, due diligence is critical and some key conditions must be sought. The desirable rewards of purchasing well are reflected in the related risks.
The opportunity to buy within the commercial sector is not only appealing to the investor but also the owner-occupier for whom the long-term benefits of owning can be more profitable than leasing.
Some crucial considerations in purchasing commercial property are:
- Location: any buyer must understand local business trends and demographics. Is there sufficient access to end-users and suppliers – and is the local infrastructure sufficient.
- Condition: Understanding the physical condition of any considered property is essential when determining the current value.
- Leases: Having experience and clarity around the conditions and duration of leases is important when calculating the true yield or return on investment, and whether these same lease terms will affect or hinder future plans for the property, including development.
- Tenants: the quality and history of existing tenants must be sought and established to provide any buyer with confidence that the required rents and other lease particulars are being met.
- Local Zoning: Have a clear understanding of any and all zoning implications and the lawful optionality of any considered property.
- Development restrictions: Oftentimes there are restrictions on what alterations can or can’t be carried out. A full understanding of any legislative restrictions in place is essential.
- What support services are accessible? Seemingly obvious features such as availability of parking and building security impact both demand and value.
- Litigation on the property – Make sure that the property is unencumbered by any past or ongoing litigation.
- Be mindful of any hidden costs related to the running or maintenance of any property.
Buying commercial property is a multifaceted, complicated undertaking and the information above represents only some considerations that must be factored in. As commercial buyers’ agents now servicing the Gold Coast market and direct surrounds, we are dedicated to representing our clients in all facets of this complex, yet rewarding, process.
As leading commercial property buyers’ agents, our wholistic service solution accounts for all aspects of the purchasing process, from the initial strategy through to sourcing and inspecting the property/properties, carrying out extensive due diligence, negotiating the best possible outcome and assisting up to settlement.
Evaluation and negotiation
A large portion of our clients initially engage us to assist with one, or multiple, properties of particular interest, seeking our expertise and assistance to execute due diligence and analysis of the property to determine the true market value, as well as devise and execute the most suitable acquisition strategy.
We work with our clients to establish an auction (and sometimes pre-auction) strategy with the goal of securing the target property within fixed price parameters.
Our wide-ranging experience and vast industry networks allow us to offer our clients a unique and valuable viewpoint of the most appropriate processes, sale methods and strategies as well as the best suited service providers, from real estate agents through to valuers, property lawyers and inspectors. Whilst we do not sell real estate, our goal is to help our clients achieve the best possible outcome whilst sitting between the client any other service provider.
Trading out of a commercial property is typically a complex undertaking, demanding a substantial investment of time, energy and capital.
The ever-growing amount of service providers and offerings adds to the complexity, so our clients call upon us to provide them with professional advice before and throughout the selling process.
As commercial buyers’ agents, our fee structure is not reliant on the sale of the property, which means our advice is given solely to assist the vendor in achieving the best possible outcome.
Our wide-ranging experience and vast industry networks allow us to offer our clients a unique and valuable viewpoint of the most appropriate processes, sale methods and strategies as well as the best suited service providers, from real estate agents through to valuers, and property lawyers.
If considering the sale of a commercial asset and would like a knowledgeable and passionate team of commercial buyers’ agents to ensure a stress free, successful transaction, we would love to hear from you.