How To Choose A Commercial Property

How To Choose A Commercial Property -


Choosing a commercial property for a business is quite risky. There are many factors to look at and even then there is no guarantee of 100 % satisfaction in future conditions in surroundings change and affects the business. Anyway, a businessman has the only option to take the first step carefully. There are many aspects to consider, hence let shave a look at those points one by one.

Deciding The Requirement Of The Business Is First Step

The first step is to decide what your requirements from the property are, as per the kind of business, which will be done in the property. Every business does not require human traffic but it may need a big area. Some businesses require good human traffic and connectivity but a lot of space is not a must. Hence make a list of the business’s particular requirements before you start looking for a commercial property. In order to do so visit any same kind of business and observe what characteristics those premises. Have a discussion with the business owners or search on internet for the requirements but do you homework well as this will help you to make a fast and confusion free decision.

Advantages Of Buying Or Renting

Here it is important to know about the advantages of buying or renting the property so that you can determine whether you want to just rent it or buy it. The advantage of renting is that you don’t have to spend huge money to start the business and you always have an option to relocate if the location does do well for you. The buying of property gives you an option to modify the property as per your own choice and mange in your way. This also become an asset which can be sold later to make money if the price increases or can be given on rent to generate passive income. So the pros of one option are the cons of other. You can decide mainly on the basis of your budget as it is not wise to buy if you don’t have enough money and you are also doubtful of the appreciation possibility of the property. You can give a quick start to your business by just renting it, in such case.


Price is the one of the most unavoidable aspect to buy anything in the world and not just the property. Hence check the price and try to understand it is priced fairly. On the basis of various characteristics, you can negotiate. It’s wise to not to go with the property blindly and try to save the money as much as possible. At the same time, sometimes price is fair if the property is really going to give your business a boom.

Demand In the Area

It’s essential to know, how much demand the business can expect in the particular area. This factor will only keep your business in existence. See how the other same kind of businesses doing in the area and what challenges are they facing while doing the business, if they are facing any. It’s important to be careful before making choosing the area.


Connectivity is very much important for few businesses. For example ; if it’s a business which needs to bring a lot of goods on daily basis, than the railways line nearby can be a boon as a lot of money will be saved which could be spent in road transport. Another example can be of a law firm where people have to come on daily basis. Here the connectivity through buses and by other means of transport which is required by the employees is important. Ones you determine the type of connectivity required for the business, its availability in that particular area needs to be determined and then only It should be finalized.

Other Facilities

The facilities should be checked carefully. You may want to go with a property which has a proper parking facility than one which does not has it. Along with the parking there can be many other facilities which you would want there to be with you property you are going to use. Hence one has to be alert enough while visiting the property.

Lift, internet, the basic needs like water connection, electricity, safety related arrangements; all need to be well researched before finalizing a commercial property.

Land Value Appreciation Should Be Good For Capital Growth

If you are buying a property for capital growth, go for a property which has a potential of appreciation in future. The land value will increase by the time but the value of the building will decrease. Hence the growth in the land value should be so much that it can even cover the depreciation in the building price.

Size Shape And Layout

Every business has different space requirements. Few can run in a small space though few need a big space. Sometimes the looks from outside and inside as well, are very much important for few businesses. A good example of this can be a restaurant where the attractiveness of the property is very important. It also needs a big area along with the parking facility.

If it’s a small company, you may not require a very big layout but the internet connectivity is a must along with the parking facility and safety.

So there can be different space requirements for different business and you need to have a clear idea of the space requirement and choose accordingly.

Legal Conditions

Be well informed about the property related laws in the location you are planning to buy/rent a property. There can be different processors at different places and also the money also can be involved for few permits. Hence it wise to be well informed so that you don’t get into an area where you have to spend your precious time and money in performing the legal formalities.

Keeping all the above points in mind shortlist few properties which fit into your criteria and to make a decision. Making a choice of a commercial property is crucial as the selection determines the future of the business or the growth in the capital.