Commercial property for sale

How do I buy commercial property?

Buying a commercial property is similar to buying a residential one.

First you need to set a budget by working out how much you have and how much you can borrow. You also need to work out exactly what you need from the property. This will vary depending on what you intend to use it for.

Next, speak to a local agent who can help you find the right property based on your needs and budget.

Once you've found the property, it's time to make an offer, organise surveys and any other due diligence you need to do.

Finally, once the purchase is complete, it's time to transfer ownership and make it your own!

What is a commercial property?

A commercial property refers to real estate that is used primarily for business purposes rather than residential living. This includes office buildings, retail stores, industrial spaces, warehouses, hotels, and more.

Unlike residential properties, which are meant for people to live in, commercial properties are used for commercial activities, such as running a business, retailing goods, or providing services.

Can you get a mortgage on a commercial property?

Yes, you can get a mortgage for a commercial property, but it’s different from a residential mortgage.

Commercial property loans, often called commercial real estate loans, are typically offered by banks or specialised lenders.

These loans usually require a larger down payment, often 20-30%. Interest rates may also be higher, and the loan terms are generally shorter than residential mortgages.

Lenders will also look closely at the property’s income potential, such as rental income, as well as your personal financial stability and business history.

We recommend speak to a commercial mortgage broker or lender to explore your options and find the best loan for your needs.

How are commercial properties valued?

Commercial properties are typically bought, sold, or leased by businesses, investors, or developers. The size, location, and specific use of a commercial property will determine its value and potential return on investment.

Commercial properties are usually valued in three ways:

• Income approach - the property’s rental income and expenses to estimate its value using a cap rate.

• Sales comparison approach - how the property compares to similar properties that have recently sold.

• Cost approach - based on how much it would cost to replace or rebuild, minus depreciation.

The method chosen depends on the property type and purpose, and often a combination of approaches is used to get the most accurate value.