Buying a commercial property such as an office can be a long process because there are so many factors to consider. Office space is generally in high demand, especially across London, and many businesses lease offices rather than buy a commercial property.
If you are searching for a new office, whether it’s a company asset or you intend to lease it out, it’s important to get professional advice. Trust property specialists with experience in the office market to guide you towards the right investments and help you capitalise on your commercial assets.
Buying an office isn’t just about considerations such as size, location and interior décor. There are many legal and compliance issues to deal with too, which is why expert advice should be on hand. Here is a list of what to look for in a new office space and legislation to be aware of, from our commercial property specialists.
As with any investment, when viewing a commercial property it’s about the underlying key factors which may affect the ongoing value of the property or cause complications. The size and location needs to be in line with your business goals, and you should also consider parking facilities and the proximity to other services and amenities you may require, including public transport. The Town and Country Planning Order should also be considered, as any business carried out in a property needs to align with its original planning use. There may be scope to redevelop the property into other uses aside from offices, but you would usually require planning permission.
It’s essential to understand the true cost of buying a commercial property before committing to a sale. On top of the agreed amount you may also have to pay VAT and Stamp Duty which can push up the price of the investment. If you’re using a commercial mortgage then the lender will charge fees for arranging it. This is on top of paying for professional services such as an estate agent, solicitor and financial advisor.
After this year’s revaluation of business rates, it’s essential to calculate the current business rates on commercial properties you’re planning to buy. Many companies have been hit hard by the recent changes, and the cost of business rates needs to be included in any financial planning. While it’s possible to apply for tax relief through a business rates advisor, buyers must consider the impact of business rate costs before making an offer on commercial property.
For landlord and tenant consultancy or professional advice on business rates, contact the industry experts at Gerald Eve.