Investing

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I’m new to commercial property investing. What do I need to know?

As with any property purchase, you’ll need to do your research before buying a commercial retail, office or industrial property.  Unlike residential property, a commercial property is often one that you will not personally occupy. You should consider the property you want to invest in from the viewpoint of a potential tenant.

Tenants tend to assess commercial properties on their location, price per square foot to rent, quality of the environment, and any shared amenities such as gymnasiums, food areas, toilets that staff will have access to.  The following points should be considered: 
  • Location - Commercial property near transport hubs or with good access and parking facilities will be in greater demand than less accessible locations.
     
  • Property Type – What are the area’s typical commercial requirements? Will the building be a suitable shape and size for retail? Restaurants? Office space?
     
  • Building Quality – How much maintenance is the building going to require? Are there any major structural issues that could be costly in the future?
     
  • Building Age – Generally, newer buildings require less upkeep and have better options for wiring, plumbing, heating and air conditioning, making them more desirable to tenants. However, older buildings with significant character will always be in demand from certain tenants so should not be disregarded.
     
  • Health & Safety - Commercial buildings must comply with strict health and safety requirements for their occupants. Make sure any property you consider meets these requirements or be prepared to invest in their upgrade.
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