Commercial properties - How to find the right property!

Many people in UK have already realised their dream of being their own boss. This is happening more and more often on the Internet, but small local businesses are still a desirable goal. Be it, for example, your own café, a painting business or other activities: It is not uncommon for a so-called commercial property to be necessary in this context. 

In our detailed guide, you will learn, among other things, what commercial property is actually about. We also go into the different types of commercial property, how to find the right property and what you should consider when buying or selling a commercial property.

In addition, we explain how the valuation of commercial property works, what you should consider with regard to tax as well as financing and what actually makes more sense: buying commercial property or renting commercial property?

What is commercial real estate?

Commercial real estate is often also referred to as commercial properties. These are buildings that are used either exclusively or predominantly for commercial purposes. Commercial property is therefore by far the most common type of property that is not used for residential purposes.

Furthermore, properties that are used for non-manufacturing purposes are referred to as commercial properties. Therefore, they are used, for example, for the management of the manufacturing industry, for example in the form of office and administrative buildings, as retail properties, supermarkets or medical practices. In terms of both taxation and building law, commercial real estate must be clearly distinguished from residential real estate. 

What types of commercial property are there?

There are a large number of different commercial properties, so it makes sense to divide the individual properties into different categories. In the meantime, the following categorisation of commercial properties has become established on the market:

Production properties (halls / industry)

Retail property

Office properties

Logistics properties

Leisure properties

Special real estate

Agricultural and forestry buildings

Let us now take a closer look at which types of one of the many properties in the commercial sector fall under each category. Production properties include, in particular, warehouses, industrial halls, workshops or even storage areas. These commercial properties directly serve either the storage of goods, manufacturing or production processes.

The area of commercial real estate includes in particular:

Shopping centres

Shops

Other shops

Cafes

Supermarkets

Thus, retail properties have the characteristic that goods are sold in the corresponding property. The term "office property" is self-explanatory, as it is usually concerned with the administration of companies. The same is basically true for logistics companies, although there again the focus is on storage.

The large area of leisure properties includes adventure parks, fitness studios, event venues such as theatres, discotheques and hotels. Another category is summarised under the term special real estate. These are, for example, airport buildings, railway stations, motorway service stations or terminals in the shipping sector.

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How do I find the right commercial property?

If you are interested in a commercial property, the question probably arises as to how you can best find the ideally suited property. Basically, there are some different standards to apply to commercial properties than if you are looking for a residential property.

In particular, the location analysis is important, because the location is also very important for commercial properties. When searching for the right commercial property, it is helpful if you can ask and then answer some questions, such as:

How many competitors are there?

Is there a demand for the offer presented in the commercial property?

What purchasing power do potential customers have in the region?

Is there a good infrastructure around the commercial property?

Are permits required from the authorities?

Are construction measures planned around the commercial property in the future?

Is the commercial property to be rented out, leased or sold again after a certain period of time?

Irrespective of these factors, the prospective buyer's budget naturally plays a major role. It is important to note that the location analysis is of much greater interest for some commercial properties than for others.

For example, if it is a warehouse, the infrastructure is particularly important because of the deliveries and deliveries. If it is a hotel, on the other hand, the most important factors are a good location and the possible customer structure that could use the offer in the future.

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