Getting into the commercial property market can be a lengthy and challenging process. It can be very time-consuming and can involve a lot of due diligence. The risks associated with investing in commercial real estate are significant, especially since the demand for commercial space is very different from the supply.
Before you start looking for commercial property, it’s important that you do your homework. This is why we have put together a list of 7 questions to ask when viewing a commercial property in Ireland that will help you get the most out of your investment.
1. Is the property in the best location?
One of the most important factors that you should consider when it comes to investing in commercial property is the location. This can be determined depending on the type of business that you’re planning on operating. For instance, if you’re planning on opening a retail shop, the ideal location is usually in a town center. On the other hand, if you need parking, out-of-town locations are a good choice.
Before you start looking for commercial property, it’s important that you thoroughly consider the area’s visibility and other potential competitors. Also, look for opportunities in areas that are expected to grow.
2. Does the property fulfill your buying criteria?
When it comes to commercial property, the area’s visibility is important as it relates to other potential competitors. Some areas have a lot of development potential and are expected to grow. As part of finetuning your buying criteria, you can look at the local country’s current and planned development projects to help you identify the ideal property. In addition to the location, it’s also important to consider other factors such as the availability of parking and the required investment to make it rent-ready.
3. What is the purpose of the property purchase?
You need to have a clear understanding of what you need. One mistake many people make is not planning ahead and buying a property on spec. This can lead to them making a poor decision and not planning on what to do with it. Having a definite set of criteria can help you make an informed purchase.
4. Do you have a realistic investment budget and ROI goals?
It shouldn’t be an emotional decision to buy a property. Before you start looking at a commercial property, make sure that you have a firm budget. It should also cover various hidden costs such as mortgage payments, maintenance costs, and environmental compliance fees. These add up and the cost can become overwhelming so make sure to budget accordingly.
5. Did you research the local property market yourself?
Having a good understanding of the market can also help you make the most of your investment. Besides conducting a thorough analysis of the property, you also need to be aware of the competition in the area.
6. How much flexibility does the property offer your business?
The availability of flexible space in the commercial property should be part of the criteria for choosing a building or a plot. This will dictate the layout of the premises and can help keep costs low especially when your business is just starting up. If want to convert or fix up the property, other rooms and parts of the facility can be sublet for extra income. There are many ways to improve the efficiency of the space by adding a parking lot, co-working spaces, garages, and retail warehouses.
7. Have you had a full structural survey done?
Make sure to thoroughly inspect the facility. Doing so will allow you to avoid potential issues and ensure that the property is in good condition. Having a building survey can also help you avoid costly repairs and unexpected expenses once contracts are exchanged.
Why Consider Buying Property in Ireland
Despite being smaller than the UK, Ireland still has plenty to offer. Its low population and affordable homes make it an ideal choice for people who are looking to live in a less densely populated area.
With so many great-value properties all around the country, there are many areas in Ireland that are known for their great-value properties.
While leasing is often the preferred option for many businesses who are looking to expand, buying commercial property can be a more flexible and cost-effective way to grow your business. It can be a sensible option for medium and small-sized businesses that are looking to expand. However, it can be very challenging to find the right commercial property in Ireland.
Before you start looking for commercial property, you need to come up with a specification for what exactly you want in your property so you can narrow the search and judge each option objectively. And, you can do this by starting with this detailed guide to be adequately prepared.