Building a commercial property can be a lucrative venture. It can take a lot for the project to succeed, so you will need to put careful thought into how and why you’re taking the steps you are. There is a lot to consider, and the more thorough you are in your planning phase, the more likely you are to be successful.
It is a good idea to start with drawing up plans and looking at how you’ll fund your project. It is also beneficial to talk to a financial adviser to ensure your project is feasible. This article will discuss some of the key considerations before you go ahead with building a property.
Decide What Kind Of Tenants You’re Looking For
An excellent first step is to consider the type of tenants you want for your eventual property. Will you be looking for retail tenants, businesses in need of offices or warehouse space? The income you can expect from these tenants may vary, as will the necessary location and specifications for your commercial property. You should make this decision early on so that you make the right type of building plan.
Locate Suitable Land
You will need to find land that will be large enough for your planned project. You should look at the various options for land and ensure you choose one that will be suitable for your potential tenants. For instance, it should be easily accessible by public transport and car. If you hope to have retailers as tenants, it is best to choose a location near areas with a lot of foot traffic and parking.
Draw Up Plans And Get Planning Permission
You should find a reputable local architect to draft your plans for your commercial building. Let them know what you need from the property and be clear in your expectations. Choosing an architect can ensure that the property will be well built, giving your tenants a suitable workspace and ensuring you will not be saddled with any significant structural repairs further down the line.
You will need appropriate funding for your project. You should ensure you choose financing that will cover the total cost. It may help to find multiple channels for funding. For instance, you could contribute some funds yourself, use bank loans or credit cards and look at government grants.
Get A Warranty
A warranty is a crucial consideration when carrying out any building work. You should choose a warranty that will protect you in the event that something goes wrong with the structure within the next ten years. It is best to get a warranty as soon as possible, as costs may go up the longer you leave it. You can find out more about what you need from a structural and Commercial Warranty from the experts at Buildsafe.
Source Quality Materials
Any building needs quality materials to ensure it is built well. While it may be tempting to cut costs by using cheaper materials, it is better to use more expensive, higher quality materials rather than sacrifice quality. You should do your homework and identify trustworthy local suppliers to ensure you get the best quality and your property is built to a high standard.
Choose A Reputable Builder
Finding a builder is an important step. You should ensure they are highly qualified and experienced in the type of building you’re developing. It is best to choose a local builder as there will be lower travel costs and they will have greater knowledge of the area and its needs. Look at a builder’s case studies, experience and reviews to find a suitable fit.
Understand Your Responsibilities As A Landlord
Being a landlord is a big responsibility. You should be prepared for the legal and social responsibilities you have as a landlord and ensure you can meet them fully. Being a good landlord will ensure you get tenants and, crucially, retain them.
A commercial building left empty can be a massive drain on resources, so it is vital that you offer the best possible service to your tenants. If you’re unsure of whether you can handle the responsibility, it may help to take on the services of a property management company.
Prepare For Delays
Delays are inevitable with any building work. It can be frustrating to experience delays in your project, but knowing that this will likely be the case when you enter into the project is vital. It is a good idea to stay in contact with your builders and understand where possible delays may come up and what you can do to ensure they are minimal.
Start Looking For Suitable Tenants
Once your building is near completion, you will need to start looking for commercial tenants. You should have a rigorous selection process to ensure you find a reliable, responsible tenant for your property. Get references from previous landlords and find out about their business. It may be best to choose an established company rather than an untried new venture.