The Perth commercial real estate market has a wide range of office space available to suit any company, from high-rise office towers to prime-position, easy to access establishments.
11 Factors to Consider When Buying a Commercial Property
When it comes to investing in commercial real estate, conducting a thorough inspection of the property is an essential step to ensure you make an informed and wise decision. Whether you’re a seasoned investor or a first-time buyer, understanding what to look for during the inspection process can save you from costly surprises and help you secure a lucrative investment. In this article, we will delve into the key aspects to consider when buying a commercial property in Perth.
Location, location, location
The old adage rings true, and it is the first factor to consider. The location of a commercial property is critical for its success and long-term growth. Analyse the area’s demographics, accessibility, proximity to major transportation hubs, and local amenities. A strategically located property can attract a diverse customer base and potentially yield higher returns on investment.
Perth’s southeastern corridor is an excellent example of prime commercial real estate, ticking all the boxes for location-based benefits. Explore these suburbs and available commercial listings in the area here.
Zoning and land use regulations
Understand the property’s zoning restrictions and land use regulations imposed by local authorities. When buying commercial property, verify its current usage aligns with its zoning status. Familiarise yourself with any future development plans or zoning changes that may impact the property’s value and potential uses.
Buying commercial property in good physical condition
Inspect the building’s physical condition and structural integrity. Look for signs of wear and tear, foundation issues, and water damage. Engage a qualified commercial agent to evaluate the property’s overall health and identify any hidden defects that could become costly liabilities in the future.
Building systems and utilities
When considering buying a commercial property, thoroughly examine the building’s electrical, plumbing, and HVAC systems. Check for outdated equipment or potential code violations. Ensure that all utilities are in good working condition to avoid unexpected repair costs after purchasing the property.
Legal and financial due diligence
Work closely with a real estate agent to scrutinise the property’s legal documents and title history. Verify that there are no liens, encumbrances, or ownership disputes that could complicate the purchase process. Review the financial records and leasing agreements to assess the property’s current and potential income.
A qualified commercial agent like Ross Scarfone Real Estate will be experienced in these matters and can help you when buying commercial property in Perth.
Buying commercial property with good parking and accessibility
Consider the availability of parking space for both customers and employees. Adequate parking is essential for businesses to thrive, and limited parking could deter potential tenants or customers.
Future development potential of the property
Evaluate the property’s potential for future development or expansion. Buying commercial property with additional space for growth offers flexibility for the long term and can increase its value over time.
Tenant profile if applicable
If the property already has tenants, assess their profile and lease agreements. Evaluate the stability and creditworthiness of existing tenants and the potential for attracting reputable businesses in the future.
Technology and security measures
Pay attention to safety and security measures in and around the property. A secure property is not only attractive to tenants but also minimises the risk of accidents or incidents that could result in legal liabilities.
Also consider the availability of high-speed internet, network infrastructure, and other technological advancements necessary for modern businesses. A well-connected property can appeal to tech-savvy companies and improve overall tenant satisfaction.
Surrounding businesses and competitors
Study the nearby businesses and competitors to understand the local market dynamics and potential customer flow. A thriving business environment can benefit your investment and foster growth opportunities. As the commercial experts in Perth’s southeast, Ross Scarfone Real Estate are well-positioned to share up-to-date market insights.
Realistic growth projections
Based on the collected data and analysis, work with your real estate agent to create realistic growth projections for the property. Make sure your investment aligns with your financial goals and risk tolerance before buying the commercial property.
Consult with an expert when buying commercial property in Perth
Inspecting a commercial property before purchase is a crucial step that requires thorough research and attention to detail. Ross Scarfone Real Estate has expertise to provide valuable guidance during the inspection process and help you make well-informed decisions. If you’re considering buying commercial property in Perth, get in touch with us to discuss your requirements, or view our current listings here.
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