As you have probably noticed, the majority of people are working from home instead of at the office. This has meant, commercial property has been effectively abandoned.
Governments are wondering what they can do about empty office buildings in their business and finance districts? They are practically begging investors to come in and swoop up as much of the real estate as possible. So, perhaps now is the right time for you to invest in commercial property and gain a giant foothold in this market. Here’s what you need to do.
Find the best location
What do we mean by ‘best’ location? Well, of course the usual things matter, i.e. prominence, business districts, financial institution headquarters, young professionals living close by, good public transport for access etc.
But, what you may want to focus on the most is, what is the ability of a particular commercial property to rebound from the pandemic?
This requires research into the job market, to find out how many workers will be returning to work in the building? You must also find out from the employers that may also be preoccupying the building, if they are planning to bring their workers back anytime soon and how many, etc.
Have a viewing
You don’t have to visit the commercial property itself to view the building. There are plenty of real estate agents that have 3D virtual tours which provide incredible detail.
During the viewing, you should note how much usable space there is. Some offices will look large, but they may have pillars running down space, or perhaps they don’t have electrics towards the outer edges of the floor.
This means employees will have their desks towards the center of the room, leaving empty space around the edge. Ask for a floor grid to understand how practical space is and whether it can be fully utilized.
Forming the contract
Once you have made up your mind to invest, you’ll need a commercial conveyancing service. There will be an exchange of contracts so you can see what the other side wants and you’ll formulate what you would like.
This does not mean any kind of agreement is set in stone. It just gives each party a bit of insight into what the other’s position is. If you’re prepared to move ahead, then there will be a due diligence report of the property.
The conveyancer will visit the property and ask the other party’s lawyer any questions that will help you understand the property’s features. They will give you a picture of what the potential return of selling the property in the future could be. Once you’re happy, then you’ll begin to negotiate the investment quantity and duration. The next stage is to form an exclusivity agreement to have your name on the rights to the property investment opportunity.
There is a golden opportunity for you to invest in a commercial property. Some of the best commercial properties need investment to save them from dereliction or saving them from a cheap sale. Take advantage of this now.
- DISCLOSURE – This post has been written by an outside source