Where do you need to focus your attention when it comes to the important step of inspecting a commercial property? There are a plethora of do’s and don’ts when it comes to commercial property purchasing or leasing and they all start with the property inspection. How can you ensure that your new commercial space is the perfect place for your business or to invest?
Top tips from the professionals
- Ensure you have a personal involvement in the properties
- Make sure you inspect each property yourself
- Take the time to ask the Real Estate Agent leading questions that will provide you with plenty of answers to show you what the property can deliver
- Check out similar properties in the area
- Make sure you do your research about the neighbourhood
Be a detective – look for clues
Use all your senses each time you go through a property.
What can you see, what is the general appearance of the property, what defects can you see clearly, what do you see when you walk through the main entrance?
What can you smell? Is there evidence of mould, mildew, water leaks or a wet small in the building, are there any other mysterious smells that need your attention, or is there a strong smell that seems to be used to mask another?
When you touch surfaces are they sturdy or when you open doors are they smooth opening?
What can you hear in the building? For example, a dripping tap, wind rustling through cracks, traffic noise.
The soundness of the structure
For anyone who has watched The Block, the hosts wax lyrical about the building and its surrounding areas being up to “code”. The code relates to each building meeting specifications that ensure it is a safe, sustainable and liveable structure. Cracks in bricks and concrete are usually a sign of building construction defects. These are the sorts of things the National Construction Code work to identify and instruct builders to eradicate.
The added cost of repairs
When looking through a commercial property most individuals have a clear idea in mind about what they would like to transform, change or update. Make sure your dreams are realistic and within the total price of what you can afford to spend. Especially when it comes to repairs that will need to be considered well before you work on the aesthetics of your new commercial space.
Is the commercial property secure?
Considering you are looking at a commercial space it’s likely that you or your potential tenant will have invested in a pile of expensive equipment. Ensuring that the new space you are looking at has security to keep materials safe is a no brainer. Over and above keeping it all safe you must also make sure that likely equipment would fit. Not only fitting in the building itself but also fits in the entrances available.
Look beyond the basic structure
When looking at a commercial space it may be tempting to just focus on the main building and not fully consider sundries like balconies, awnings, patios, external sheds or buildings but these are all part of the commercial purchase and may cause you undue costs if they need to be repaired or torn down if they do not meet building codes.
Some final questions to ask yourself
- What is the location zoning? Does it meet your business permits?
- Is the location large enough? Does it meet all your business needs?
- Are there any repairs or fit-out requirements?
- What are the lease terms?
- Can you afford the lease?
- Do you want a whole building or could you work with a shared space?
- Where are your competitors?
- Should you buy or rent?
- How far will you and your staff have to travel to this location? is it convenient?
- What are the nearby facilities, for example post office, cafes, lunch options and parking?
- Does the location meet the image you want your business to portray?
- Can your customers and suppliers easily access your location?
- What is the parking situation like?
- Is there an opportunity for your business to expand in this location?
Once you have considered all these factors you will be well on your way to making the best informed choice on your next property.