Thing To Always Check Before Buying A Commercial Property

Thing To Always Check Before Buying A Commercial Property -


Investing in a commercial real estate property can be one of the best investments if you make a right choice but making the right choice is not that easy. That is why people invest a lot of time in making the decision of buying a commercial property. Investment in real estate is a common trend these days as many people have secured themselves financially by making wise investments in commercial properties and now they have become the financial gurus of the world.

Though it sounds amazing and fruitful but there are also many properties which never could yield any rent in many years. Hence one needs to be careful enough while investing in a commercial property in order to get good returns. In this article we have tried mentioning all the important points which should be kept in mind before buying a commercial property.

Human Traffic

No matter how good the property looks and how much you like it but always keep in mind that sometimes the small stalls do better business than the big restaurants. Here comes the location, the human traffic in the area, as the people only will make the business successful. Though different businesses may have different location requirements like a big office of a well established company can be settled in an area which is though a little far from the city but well connected. A restaurant can better survive in the main city where many people are visiting the place and make it successful. Think about the property you are buying well and try to understand the use of it and then invest your money as post that you need to attract right businessmen to use that property and make most of it.

Basic Infrastructure

A business cannot survive without water, electricity and good drainage system. These are basics for a proper life and business as well. It may be any business, but these are the basics and how much ever good the property is, of no use without these basics. It may be risky if you buy some property where any of the basic facilities are going to be available soon.

Condition Of The Property

Carefully try to know that what was being done in the property, by whom and how? By doing this research, you will get an idea of the condition of the property. You will be able to make an understanding about the future requirements of repairs and also the money you may need to spend before you give it on rent. By doing a proper analysis of the property condition, you can also get an idea of the resale value or the rent to be expected.

Transportation Facility

Check, if there are frequent buses coming or of there is railway line connectivity in the city or area. This makes a difference as the business owners don’t have to shell out extra money in just transporting the goods and this will definitely prove your property to be a good rent generating asset.

It depends on the business which will be done from your property that what kind of transportation is more required. Here you need to see for what type of business your property is compatible and then you can think of the transportation facility.

Restrictions To Modify

Be aware of the property laws before you spend your money in it. There is possibility of many modification related restrictions in the property. So you may not be able to modify it however you want if you are planning to do so. Hence you are suggested to sincerely go through all the legal documents and understand if there are such restrictions. This will help you to make the right decision.

Any Unrevealed Costs

Check whether there is anything you need to pay like the maintenance costs. Anything like this has to be brought into your notice officially and should be on paper. Hence ask about these costs before making a decision as this will definitely affect the rent and also the resale value for sure.


Never get stuck with any property without checking the litigation status. Check all the documents properly and see if there are any litigation issues with the property. If yes, you can just step out of the deal or you have an opportunity to negotiate on the price and pay less amount.

If you have people in contact, who can help you to deal with the litigation issue well, maybe you can go ahead with the deal but if you don’t have such understanding or contacts, it’s better to not to continue with the deal immediately.

Services For Business Support

There are few other things to look at. Lift system; which helps people to use the premises comfortably, parking facility; which again helps the business people to come and go with ease, security; which is a must again to make people feel safe. Check which facilities are available there and if those are required for the possible business in the property. Property having already established support facilities helps a business to concentrate mainly on the work as the other facilities are already set and this obviously takes the resale value and the rent higher.

Taxes And Reason Why It Is Being Sold?

Before finalising the property to buy, it’s a must to see what kind of taxes to be paid and how much amount to be paid. As the big money is involved, it’s always better to be informed about it beforehand.

Check why the current owner is selling it? Sometimes by doing this research, people get know about some hidden knowable facts which may make them step behind. Also ask the owner how much income the property is current making and discuss with him about the possibilities in the asset you are going to own.

Hence try to be alert, well informed, well educated and sensitive to sense anything hidden to make a right deal.