Buying business property
Businesses looking for premises will usually choose to rent, but in some situations it makes financial sense to buy business property instead.
Why buy commercial property?
A few examples of situations where you would consider buying business property include:
- you decide to open a commercial unit and want to live in some part of that property
- you feel that potential increases in property value could be a good investment opportunity
- gives you peace of mind knowing you don't have to worry about lease renewals or substantial rental increases
Buying business property may present additional challenges that you wouldn't normally face if you were just renting commercial property. Finding commercial property to buy with vacant possession is difficult. Commercial mortgages are over a shorter term, so repayments can work out higher than rental costs. However, you should be aware that there is also a risk that the property you buy may depreciate. You should weigh up the decision carefully and seek professional advice.
Impact of the shift to hybrid working
Many businesses, during the COVID-19 pandemic, were obligated to facilitate staff working from home for public health reasons. Although many businesses have since welcomed staff back to the office some may now only operate on a hybrid basis, where staff divide their time working at home with limited time in the office. This may have a significant impact on a business's requirement to buy property or at least make businesses reconsider the size of property they require if employees are going to continue to work from home in some capacity.
This guide covers the costs of buying business property and what to consider when you make an offer to buy a business property. There is also guidance on using a surveyor and using a solicitor when concluding the sale.