Commercial property in the UK may be one of the best investments you’ve ever made. If you have successfully developed your small business from the ground up or are just starting out, the question you need to address may inevitably surface: should you purchase property for your company? Buying commercial real estate can be very complicated, even for insiders. It’s not exactly the same as buying a house. It’s going to take time, analysis and preparation.
Owning a commercial property in the UK is also a decision that needs to be carefully considered, and each situation is different for each company. But it can be a smart investment under the right conditions, and future rewards can be fantastic. In this guide, we will go over some of the benefits of buying commercial property in the UK, give tips and suggest ways to make it work for you and your small business.
Why Buy Commercial Property For Your Business In The UK?
Purchasing assets for your company is really smart. When it comes to buying commercial property for your UK business, the term “commercial” refers to any property you use to develop, extend or sustain your growing business. They can be everything from manufacturing plants, general-purpose offices or structures, medical offices and more. With that in mind, there are many reasons to consider making such an investment. It’s an opportunity to develop wealth, make your expenditures more stable, and probably reap tax benefits. Here are more than one reason to consider buying commercial real estate:
Advantages Of Buying Commercial Properties For Businesses In The UK
Enjoy the peace of mind of understanding what your expense will be from month to month. Fixed-rate loans mean there is no exposure to volatility such as market rent rises.
Costs involved in owning and operating your business space will result in favourable capital gains rates and cost deductions such as mortgage interest, property taxes and more. Please consult your accountant before making a purchasing decision.
Total Influence Over It
You call the shots when you own it. You have full control of your property, as well as any occupant or use of the house. Think it’s time for a renovation? Go ahead.
You can customise and tailor your company as necessary. This could really be a bonus as the company develops.
Show off your brand and set the style and culture of your company for everyone to see. Maintaining, customising and enhancing the standard of the property helps to represent the company and encourages strength and stability.
Tips For Purchasing Commercial Properties In The UK
While there is no tried-and-tested formula or one-size-fits-all strategy for buying commercial real estate, there are general guidelines that any small business owner may use to get started. Just ask yourself the right questions. Before you start, you need to be clear about your goals and know what you want. Here’s a variety of things you should consider:
- What kind of commercial property do you need?
- Is it for your own business, or will it be rented out?
- Are you buying it to lie empty to sell in the future?
- What location would be ideal in the above circumstances?
- How much of a risk are you willing to take?
- What contractors if any or skilled people will you need to hire to assist you or could you do any maintenance yourself?
Find A Property That Fits Your Business & Consider The Following When Deciding Where To Purchase:
This is the number one concern in the acquisition of commercial real estate. When you set up a store, you can make all the difference, if you want to be close to your customers; whether you need connexions to roads, highways or shipping lanes; or some other excuse.
From commercial office space to industrial facilities, make sure the local zoning allows for the type of company you’re bringing in.
Have a thorough inspection of the property and find out about potential environmental or liability issues, such as asbestos or lead paint, beforehand.
Be familiar with all zoning regulations or building codes, as there might be provisions in place before you can make improvements to the outside or inside.
Make sure that you have as much parking space as you need, as well as up-to-date disability access.
If you’re looking to develop your company, search for properties that you can expand. Always consider the opposite: if you don’t end up using all the space, can you rent it out?
Assemble A Team of Experts
Surround yourself with experts who can locate the nuts and bolts in the places you may not even have considered looking such as:
A real estate broker can help you locate possible assets in your price range.
Get aid with all funding needs, from subsidised government loans to commercial real estate loans.
Bring in an advisor who can advise you about what your company can afford, work through tax benefits and estimate your operating budget.
Make the process simpler for you with a legal representative to discuss and complete the whole transaction.
How To Make Commercial Property In The UK Work For Your Business
There are many ways in which your small business will profit from the possession of commercial land. Here are a few of them:
Owning is an opportunity that can increase value over time. Usually, and depending on location, commercial properties will return between 6% and 12% per year. This is a lot higher than the national average of 1% to 4% on single-family residential properties.
Make Money Through Advertising
There are other ways to capitalise on your commercial property when it comes to ads, such as: selling billboards or billboard space on the property, publishing a service directory if you have several tenants, and then selling ad space on the property.
Cross-advertising with local or small companies where it makes sense. Provide services to tenants. Make additional services available to buy from you, such as premium parking spaces, garbage collection, maintenance services and more.
To Sum Everything Up
As a small business owner, it can be very tempting to own commercial assets. You are your landlord, and it can also make you more noticeable.
With the right knowledge and research buying commercial property in the UK for your business can be a wise investment and a fertile ground for the growth and development of any small company.