Buying a property is one of the most significant decisions of your life. It’s usually an expensive one-time investment that can improve your returns over the years as property values are forecasted to be rising in the coming years. If you are planning to buy commercial property in Brampton, it’s better to keep some factors in mind such as parking space, accessibility, and location proximity among many others.
Choosing the right commercial property can boost your business reputation as well as productivity. No matter, you are buying it as an investment property or going to rent it as a co-working space, this article will guide you in making the right decision.
Factors To Keep In Mind When Buying A Commercial Space
- Budget & Financing Options
Whether you are going to buy a property for self-usage or planning to rent it, the foremost thing to consider is your budget. Look for properties that meet your budget and offer the best value in it. Since not everyone can buy upfront, look for some financing options or commercial mortgage lenders who can help you finance your property at the best rate possible with little to no down payment.
When it comes to applying for a mortgage, the maximum loan-to-value ratios can differ and vary greatly on the lender terms you choose.
- Location & Accessibility
Since commercial properties have a large footprint of customers and employees, it’s better to consider buying a property located at a posh city location with well-connected road accessibility.
Once you finalize your budget, it’s time to look for a prospective seller who is selling a commercial property that matches your location needs. This way, you’ll be able to shortlist a few properties to choose from.
- Target Market
Before buying a commercial property, keep the products and services you sell in mind. Invest at a location that is easy to access by your target audience. For example: If you are buying a restaurant space, choosing the city’s center location will be a better decision.
Target market and relevant location are important for your business as the new customer will be able to discover your business and will boost your sales.
Choosing a high-demand location usually costs much more as there’s often competition for willing buyers. You should better know how to negotiate a profitable deal if you are buying a commercial property in a market location or planning to rent it as a co-working space.
In the case of industrial spaces, you won’t face much buying competition, and finalizing a low-cost property buying deal is possible.
- Property Proximity
Make sure the commercial property you are planning to buy has close proximity to your customers as well as suppliers and stakeholders.
This will minimize the logistics expenses and make supplying your products or services quite easy and hassle-free. When target customers are in close proximity, the odds of becoming the first choice of customers turn positive.
- Parking Space
All commercial properties need plenty of parking space for employees as well as customers. Don’t forget to inform your real estate agent in Brampton about your parking space requirements.
Though making underground parking is possible, still consider buying a property that already has an underground parking or an off-site parking option available very close.
- Crime Rates
To ensure your and everyone else’s safety, choose a commercial property at a location that has the least to no crime rate. Go through newspapers or local resources to find out about the reputation of the place and any crime reported in past years.
Also, consider environmental factors like rainwater or snow in mind. Make sure the property is easily reachable during heavy rains or snowy days.
- Property Layout
Since renovations can result in very high expenses, make sure you go through the property layout and condition it is in before finalizing the deal. Whether you have decided to lease or purchase a commercial space, it’s advisable to choose a property that has a layout similar to what you have envisioned.
This will help you in saving money in the long run and you don’t have to spend much on renovations and space additions.
- Contract Terms
Every selling and leasing contract comes with specific terms and conditions that must be agreed to before making a purchase. If you are looking for a commercial property on rent, make sure you go through the lease contract that clearly states the lock-in period.
Choose a property having the minimum lock-in period, just in case you plan to move from the property, you’ll be required to pay the rent for the entire lock-in period. The shorter the lock-in period, the lesser are extra rent paying chances.
- Property Insurance
No matter, how small or large is the commercial property you have decided to buy, having property insurance can save you thousands of dollars on repairs and damages.
Commercial property insurance is a must-have entity that reimburses any lost income, just in case your business operations get halted due to structural issues or inaccessibility.
- Condition and Age
The last, but significant property aspect to consider is the property’s age and the condition it is in. You can hire Harpreet Rakhra, real estate agent for property valuation and assessment before signing the buyers’ contract.
The older the structure, the more the insurance premium. Though many older structures are quite sturdy and strong built, make sure the age of the structure has no effect on the property insurance.
Buying a commercial property is a crucial decision that must be taken after considering all the possible factors that can impact your decision. An expert realtor in Brampton can help make the right choice after taking you through all the property buying ins and outs.
In this article, we have listed some important factors that play a significant decision in helping you decide which commercial property you should or should not invest in. Don’t forget to read them all to make an informed choice.