What to look for while buying building for an
office - non institutional small builder floor buildings
Rule number one
when buying a building for professional use: don’t act as if you’re buying your
dream home. When you buy a house, you put your heart and soul into it.
Something as minor as an ugly door handle might make or break a sale. When you
purchase a building for your business, however, it requires less emotion and
more common sense.
office building doesn’t work for every type of business. If you are in a stable
industry and have an established business buying a property makes a lot of
But if you are a
startup we strongly recommend renting instead of buying.
When buying a commercial
building you get multiple offers on different properties. Think logically not
emotionally and invest in the property which will greatly enhance your business
Whether you are a
startup, MNC or an investor looking for a good investment opportunity please
understand the pros and cons of investing on buying a office building as
mentioned below –
Obtain Expert Advice and
property is the object to purchase, there are many different persons involved
in these dealings. It is important to have open communication with these
individuals, but experts in the field may provide the best advice and
assistance. It is always a good idea to have an experienced consultants, like Onix
Advisors, beside you. Not only can realtors help you find good properties, they
can even negotiate on your behalf and shoulder your burden and make things
extremely convenient for you... A broker could also help with the purchase and
details of the building.
Location is everything. Commercial properties provide returns through two avenues— rent and capital appreciation. Both are heavily dependent on the location. Look for locations where vacancy is less. This will mean that supply is in check and tenants are less likely to vacate, leading to higher rents and capital appreciation. A high vacancy location gives tenants options to move and renegotiate rents.
First and foremost, it is important to list out one’s requirement expected when choosing a commercial property. The property specification list includes the factors of structure, location, size, layout, facilities and parking that are to be considered. A safe and suitable working environment should be provided. Premises should be accessible when goods or services are being delivered. Disabled access should be provided. Facilities like drinking water, toilets, wash area, waste disposal, good ventilation, suitable lighting, and a clean workplace are mandatory.
Taking long term business plans
into account, the space should have the flexibility to be altered or expanded. Identifying
the area’s broadband capabilities is yet another task. With most of the work
and communication being dependent on the internet, this is a necessity.
Two buildings may be in the same location, but the one boasting better quality will always get rented first. It will also attract better quality of tenants. Needless to say it will fetch the investor higher rents, better tenant retention and higher capital appreciation. Multinational tenants are always willing to pay a premium for quality.
This is one of the first things to analyze before committing to buying a commercial property. Every city has different micro-markets. In Bengaluru there is ORR, Whitefield, Electronic City etc…Each micro-market has an amount of office already completed and leased and upcoming supply.
Interior fit outs
Liquidating is also tough. Real
estate is a very illiquid asset. So, it is not at all advisable to do any sort
of investment with a short-term horizon. If you are the sole owner of the
property, then ideally hold on to it for the long term. But keep doing the
necessary maintenance so that the rentals and the value of the building
appreciate or at least remain intact.
Hope so the above points will help
you in deciding in investing on an office building.
We have a team
who are highly efficient and carry 30 years of combined experience in the field
of real estate. We will
help you in finding a suitable space for you as per your requirement.
For more details please call/WhatsApp