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A fully occupied building can still be carrying a substantial hidden repair liability When investors assess a tenanted commercial property, the headline figures can look reassuring. The building is occupied. Rent is being paid. The tenant has several years remaining on the lease. But one question can materially change the quality of that investment: Who…
Today’s service charge might not tell you what the building will cost tomorrow When buying a commercial investment, investors often review the obvious numbers: But one potentially significant cost can sit quietly in the background: future major works. A commercial property may currently be producing strong income with relatively modest annual maintenance expenditure, while simultaneously…
What happened on the site 50 years ago could still affect its value today Commercial property investors spend a great deal of time looking forward. What rent could the property achieve? Could the building be extended? Is there redevelopment potential? What might the asset be worth in ten years? But with some commercial properties, investors…
A tenant improving your building can be good news — until the alterations create a problem Commercial tenants rarely occupy buildings exactly as they find them. A growing business may want to install a mezzanine floor. A warehouse operator might require additional offices. A manufacturer may need extraction, machinery or upgraded electrical infrastructure. A retailer…
The purchase price on a commercial property brochure may not be the final amount you need to fund An investor sees a commercial property advertised for £1 million. The yield works. The finance works. The deposit is available. Then the solicitor or accountant asks an important question: “Is VAT payable on the purchase price?” If…
Fire safety can affect far more than simply whether a building has extinguishers When purchasing commercial property, investors routinely investigate leases, rents, surveys, planning, title and tenant covenant. But another area deserves serious attention: fire safety. A commercial building may appear perfectly functional while still containing fire-safety issues that require substantial expenditure or restrict how…
Water can turn a strong commercial investment into an expensive problem When viewing a commercial property, investors usually pay close attention to the building itself. The roof looks sound. The warehouse is dry. The yard is surfaced. The tenant is paying rent and the numbers work. But what happens during several hours of exceptionally heavy…
Owning the building doesn’t always mean you can use every part of it exactly as you want A commercial property can appear perfect during a viewing. The warehouse is the right size. The yard is generous. Vehicle access looks straightforward. The location works, and the numbers stack up. But the legal title may reveal something…
A great building can become a poor investment if the intended occupier cannot legally use it When assessing a commercial property investment, investors naturally concentrate on the fundamentals. Location. Rent. Yield. Tenant demand. Building condition. Access. But there is another question that should be answered before committing to an acquisition: What can the property actually…
Owning the building doesn’t always mean you can use every part of it exactly as you want A commercial property can appear perfect during a viewing. The warehouse is the right size. The yard is generous. Vehicle access looks straightforward. The location works, and the numbers stack up. But the legal title may reveal something…