Montag, 3. März 2014

Is This Property Considered a Commercial Property?

A Commercial Property is a building intended for business use. As a commercial property it ought to generate a profit either from capital gain or rental income.

The premises can be occupied for business purposes, shopping or industry. Examples include, office space, warehouses, storage units, factories, retail units or shopping malls, restaurants and medical centres or clinics.

Some commercial property serves two purposes with retail on floor one and office space from floor two and up. Apartment buildings are also considered commercial property since rent payment is considered income.

If you want to you can buy commercial property outright or you can lease it from an agency. Should you decide to buy a commercial property it is vital that you do your research. Using a chartered surveyor for this is a good idea. They cannot do it all for you, but can give you a lot of detail about the state of the building and the land.

If the real estate you have in mind suits your size, image and location criteria, then pay due diligence not only to the condition of the site or building but also to any current tenants. Check credit history and the fine details of any leasehold to confirm that you have a long term tenant who is financially secure.

If you can check recent insurance claims made against the building. This can highlight potential issues with the fabric of the building. It is also important because previous claims can affect how much you will have to pay to insure the building.

Regardless of what the building is being used for now it is important not to assume that activity is taking place legally. If it is being used as a factory check it is zoned as such, because if it is not you could end up with a useless building and possibly be fined for carrying out an illegal activity.