Top Factors to consider before investing in Commercial Property

A good commercial property can greatly one-up your business, while a bad one can incur great losses. If you are about to Buying or renting a commercial property, it is a very serious investment, and one that should be done very carefully. You must consider some important points that directly impact your business. We brought a comprehensive guide of factors you should keep in mind when investing in commercial property.

Your Address Matters

Location is one of the newest marketing and branding techniques in today’s world, and that is why you should be paying utmost attention to it. First of all you need to specify the exact location according to your business nature. Let suppose you are supposed to start retail business and you need a retail shop, a residential area, or a commercial area within a residential society may be a good idea. But if you are going to set up a corporate office, you need to stay away from residential areas.

Parking Space

Parking space is an important factor that impacts on your business. What you need to do is, depending on the nature of your business, look for a property that provides you with parking space that suits your requirement. Section 5.1(ii) of the zoning regulations formulated by the Government of Punjab Housing, urban development and Public Health Engineering Department covers the importance of parking spaces, and also specifies cases where it is mandatory by law.

Thirty-Day ‘Due Diligence’ Period

Fix a period of thirty days to perform due diligence. As the thirty-day due diligence period is often observed by professionals before every major investment decision.

• Make rounds of the building

• Visit areas surrounding it

• Inspect the entire property

• Talk to people and get an appraisal of the price/rent of the building too

It will also help you estimate the overall expense that you will incur once the deal is finalized, for example repair and maintenance, taxes, bills etc.

Condition of Overall Building

The Building Code of Pakistan 2016 lists down all mentioned factors, and more, which are necessary in any commercial or high-rise building. So just make sure that the building meets all safety standards, for example fire exits, wheelchair ramps, and elevators. In case of a smaller commercial unit, ensure that the wiring is high quality and that there are no issues with provision of basic utilities. Get an expert to confirm that the building is sturdy enough and fit for commercial use. Do walk through all the emergency exits when you visit as well.

Avoid Residential Areas

Depending on the nature of your business, avoid commercial property in residential areas if you are looking for an office and require peace and quiet. Depending on the nature of your business, it may also be illegal according to the Building Code of Pakistan 2016. It will make a terrible impression on your clients if your office nestles in the middle of residential houses, and the sights and sounds often don’t get along with a professional setting.

Network & Signals

During your due diligence period, take your laptop, WiFi device and mobile phone to the building and check all the signals. Business operations of any kind cannot take place in a building facing issues with internet and mobile phone signals, and it is always a good idea to check beforehand. Also keep in mind that not just the availability, but reliability and speed as well matter when it comes to smooth and efficient working. All of these things, according to an international research, are part of a list of factors that directly affect employee motivation as well. You cannot expect smooth working without provision of fast and reliable basic utilities and communication and information services.

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