Buying commercial property: office, shop, warehouse, building
What you are buying for: yourself or to rent out
The answer decides almost the whole choice. If you buy for your own business, the main things are location, entrance, utilities and size. If you buy as an investment, it matters more whether there is a current tenant, on what terms the agreement was made and what income the property brings. Premises with a tenant can be a good deal, but you need to see the agreement, the term and the history of payments.
What to put in your request
- type of property — office, shop, warehouse, a separate building, production premises;
- area — city, locality or street;
- size — in sq ft;
- budget — an amount or a range, if you want to name one;
- use — for a pharmacy, a café, a warehouse, an office;
- floor and entrance — ground floor, separate entrance, main-road frontage, ramp, truck access;
- land under the property — whether a plot is included and how big;
- tenant — whether you want a property with a current tenant and what yield;
- documents — commercial use permitted, title.
Example: “Looking for a standalone building for an office in Chennai, near Guindy, about 1,600 sq ft, with land of its own. Preferably with a separate entrance and parking. Commercial use permitted, clean documents. Budget up to ₹3 crore.”
What to check before the deal
The most important thing is the documents. Make sure the property is cleared for commercial use (changing a residential property to commercial use can sometimes take a lot of time), that the title is registered and there are no claims or unpaid maintenance and utility dues. For a standalone building, check who owns the land and on what terms it is used: ownership or lease.
For premises with a tenant, ask for a copy of the agreement, the amount and term of the rent, any pledges and the terms of ending it. Do not rely only on the promised yield: work it out yourself, counting taxes, maintenance and empty periods. Before buying, bring in a lawyer and assess the technical state: roof, utilities, electrical capacity. When you compare properties, count not just the price per sq ft but also the cost of repairs and of bringing in the power you need. A typical mistake is to buy at a good price and then spend as much again on adapting the premises to the activity you need.
How it works through BlaBlaPrice
Owners and agents answer your request in the chat: which property, the price, the documents, photos. The request is checked before it is shown, and BlaBlaPrice shows the offer that is best on the merits first. Sellers see where they stand among the others, so they often improve their terms. Contacts stay hidden until you choose whom to give them to. More: how it works.
If you are also considering renting, see commercial property to rent, offices to rent and retail premises to rent.
