Offload your commercial property without fees or hassle.
Looking to sell your commercial property, but unsure where to start? As you may have already assumed, selling commercial properties is slightly different to selling a residential property.
This page intends to delve into how you can sell your commercial property in the simplest way possible.
When it comes to selling a commercial property, there are many factors you need to be aware of.
Throughout you will need to have basic knowledge about legislation surrounding your commercial property.
You need to create buyer information about your property so perspective buyers can consider purchasing. Within this, you need to include an asbestos survey (if applicable), details about business rates (stamp duty and other costs), an energy performance certificate, and planning permissions.
When choosing an agent, select one that is an accredited member of a trade body.
To sell your commercial property you will need both a commercial agent and a solicitor. Your solicitor will be in charge of the legal side to sell your commercial property as quickly as possible.
When selling your commercial property, you can choose any agent, however they need to have a great depth of understanding about your main aim of selling your property.
There are around six different costs that you must take into consideration when selling your commercial property; solicitor’s fees, removal costs, mortgage arrangement fees, capital gains tax, commercial agent fees, and mortgage redemption fees.
Valuing your commercial property can be a lengthy process. To include all the right details for you, this is displayed in the next section.
Any offer you receive should come via your commercial agent, as by law, they are required to inform you. Your selected agent will be able to advise you on any offers made. When you accept an offer, a sale agreement will be made.
Once the legal side has been finished, and your buyer has paid a deposit, then a completion date will be agreed upon. This will be the end of the sale and everything will be completed.
Commercial property for sale is indeed a good investment. There are several compelling reasons why investing in commercial real estate can be a lucrative opportunity.
Firstly, commercial properties have the potential to generate substantial rental income, often at higher rates compared to residential properties. This consistent cash flow can provide investors with a stable and reliable source of income.
Additionally, commercial properties tend to appreciate in value over time, allowing investors to benefit from capital appreciation. Moreover, commercial real estate investments offer diversification benefits, as they are not directly tied to the fluctuations of the residential housing market.
This can help mitigate risks and provide a more balanced portfolio. Furthermore, leasing terms in commercial properties are typically longer, providing greater stability and reduced vacancy risk.
Finally, commercial properties often offer various tax advantages, such as depreciation deductions and the ability to offset income with expenses. Considering these factors, investing in commercial property for sale can be a wise decision, offering both financial stability and growth potential.
Valuing a commercial property involves a comprehensive assessment of various factors to determine its worth in the market.
Several key aspects are considered when determining the value of commercial real estate.
Firstly, the location of the property plays a crucial role, as properties in prime locations with high demand and access to amenities tend to have higher values.
The size and condition of the property also factor into its value, with larger and well-maintained properties generally commanding higher prices. The income potential of the property is another significant consideration. The rental income it generates, lease terms, occupancy rates, and the overall financial performance contribute to its value.
Additionally, the property's potential for future development or expansion, as well as the overall market conditions and trends, are taken into account. Comparable sales data of similar properties in the area is often utilized for benchmarking and comparison purposes.
Valuations may also consider the specific use or sector of the commercial property, such as retail, office, or industrial, as each has its own market dynamics and valuation methodologies.
Ultimately, commercial property valuation is a complex process that requires expertise, analysis of various factors, and an understanding of the local real estate market to arrive at an accurate and fair market value.
A good return on commercial property investment is typically measured through several key metrics that indicate the profitability and performance of the investment.
One commonly used metric is the capitalization rate, or cap rate, which is the ratio of the property's net operating income (NOI) to its purchase price. A higher cap rate indicates a potentially better return on investment.
Additionally, investors often look for a healthy cash-on-cash return, which measures the annual cash flow generated by the property relative to the initial investment.
A higher cash-on-cash return signifies a more favourable return on the capital invested.
Furthermore, the internal rate of return (IRR) is another crucial indicator that considers the time value of money and calculates the overall profitability of the investment over the holding period.
In general, a good return on commercial property investment would vary depending on factors such as location, property type, market conditions, and investor objectives.
However, aiming for a cap rate above the market average, a competitive cash-on-cash return, and a desirable IRR are key indicators of a successful commercial property investment.
It's important for investors to carefully analyse these metrics and align their investment goals with the potential returns offered by the commercial property they are considering.
Commercial property taxation in the UK involves several components that property owners and investors need to be aware of.
Firstly, non-residential properties are subject to business rates, which are taxes levied by local authorities based on the property's rateable value. The rateable value is assessed by the Valuation Office Agency (VOA) and represents the property's rental value on a specific date.
The business rates are calculated by multiplying the rateable value with the multiplier, also known as the Uniform Business Rate (UBR), set by the government.
Different sectors and regions may have varying multipliers.
Additionally, capital gains tax (CGT) may be applicable when selling a commercial property. CGT is levied on the profit made from the sale, with the tax rate depending on the individual's tax band.
Property owners may also claim allowances such as Annual Investment Allowance (AIA) for certain types of capital expenditure.
Furthermore, rental income from commercial properties is subject to income tax or corporation tax, depending on the ownership structure.
Deductions can be claimed for allowable expenses incurred in relation to the property, such as repairs and maintenance costs.
It's essential for commercial property owners to stay updated on tax regulations and seek professional advice to ensure compliance and optimize their tax position.
The distinction between a commercial and an industrial building lies in their primary purpose and the activities they accommodate.
Commercial buildings are typically designed for businesses that engage in activities such as retail, office work, or services.
They serve as spaces for selling products or providing services to the general public or specific clientele.
Commercial buildings often feature amenities such as storefronts, offices, showrooms, and customer-oriented facilities. Examples of commercial buildings include shopping malls, office complexes, restaurants, and hotels.
On the other hand, industrial buildings are specifically tailored to support manufacturing, production, storage, or distribution activities.
These buildings are designed to accommodate heavy machinery, equipment, and specialized processes related to the manufacturing sector. Industrial buildings often feature large open floor plans, high ceilings, loading docks, and ample storage space.
They are located in industrial zones or areas designated for industrial activities. Examples of industrial buildings include factories, warehouses, distribution centres, and production facilities.
While both commercial and industrial buildings fall under the umbrella of non-residential real estate, their key differences lie in the intended use and the types of activities they facilitate.
It's important for investors and businesses to consider these distinctions when seeking a property that aligns with their specific operational requirements.
Yes, industrial units can be a good investment for several reasons. Firstly, industrial properties tend to offer attractive rental yields and income potential. With the rising demand for storage, logistics, and distribution services, industrial units are in high demand, leading to a strong rental market.
This can provide investors with a stable and consistent cash flow. Additionally, industrial properties often have longer lease terms compared to other commercial properties, which provides greater income security and reduced vacancy risk.
Moreover, industrial units have shown resilience during economic downturns. The growth of e-commerce and the need for efficient supply chains have increased the demand for industrial spaces, making them less susceptible to market fluctuations. This stability can offer investors a degree of protection during uncertain times.
Furthermore, industrial units have the potential for capital appreciation. As industrial areas expand, and land becomes scarce, the value of industrial properties may increase.
Investors who can identify emerging industrial locations or areas undergoing redevelopment can benefit from future appreciation.
Lastly, investing in industrial units can provide diversification benefits to a property portfolio. Including industrial properties alongside other commercial or residential assets can help spread risk and potentially enhance returns.
However, as with any investment, careful consideration of location, market trends, and due diligence is crucial.
Engaging with experts in the industrial property sector and conducting thorough research will help investors make informed decisions and maximize the potential returns on industrial unit investments.
An industrial unit for sale can be more profitable due to lower operating costs, long-term tenant stability, higher rental yields, potential capital appreciation, and adaptability for value-add opportunities.
However, profitability depends on factors like location, market conditions, and investor goals. Thorough research, expert guidance, and due diligence are crucial to maximize the profitability of an industrial unit investment.
Commercial agents always compete with one another. So before settling on one agent, have a discussion around their competitors. On the bright side, commercial agents tend not to charge a high fee.
When selling any type of property, you need to enlist a solicitor to help with the legal side of your sale. They usually carry out fees for conveyancing, however you may be able to negotiate a lower fee.
Before selling, discuss with your financial advisor about CGT as you may be liable to pay this cost.
If your company uses any type of equipment or furnishings that will not be part of the sale, you will need to arrange to have these removed at your own cost.
If, for whatever reason, you are unable to transfer your existing commercial property’s mortgage, you may be liable to paying mortgage arrangement fees.
If you have a mortgage on your business property, but pay this off early, you may be required to pay a mortgage redemption fee.
There are all sorts of different types of business properties that business owners want to sell, such as:
Hotels – casinos, resorts, boutique, full-service, etc.
Retail – community centres, shops, shopping centres, etc.
Industrial – warehouses, heavy manufacturing, flex industrial, storage and distribution, etc.
Special purpose – churches, arcades, bowling alleys, etc.
If you are looking to sell your commercial property through whatever means then your buyers will be looking for a few bits of information that you should make readily available. Here is some of the information that you may require in order to sell your commercial property:
Energy Performance Certificate (EPC) for commercial property
Any planning permissions, lawful use certificate and use classes
Asbestos survey if required
Details of your business rates, stamp duty land tax and other costs the buyer may need to know
There are many different reasons why you may need to sell your property quickly.
Maybe you have seen a new premise for your business to move to, but you are struggling to find a buyer for your current property. Or maybe you are switching from trading offline to online and need the cash quickly to spend on your online marketing.
Auction - this can be an easy and useful way to sell your commercial property, especially if you need to sell quickly. At the auction, you can sell your business premises no matter what the condition. However, with auction there is no control over how much you may receive for selling your property. So, if you have a target of how much you would like to gain from selling, this may not be the selling method for you.
Raffles - one of the more unusual methods of selling your property is through a raffle. You can sell your commercial property by having your property as the first prize within the draw. However, similar to the auction, it is unpredictable how much money you receive from selling through this method.
Commercial property cash buyers - within the industry, there are a lot of quick sale companies that can buy your property for cash. Although they will not be able to offer you the full market value, they will generally offer you a fair price. However, make sure you research into the company before you choose the right one for you. Some have hidden costs and work with third party companies.
We are leading commercial property buyer experts. On average, we buy any property within two to three weeks. We are regulated by The Property Ombudsman and the National Association of Property Buyers which means we make sure our customers are protected at every stage of the buying process.
The Property Buying Company always endeavour to build a rapport with our customers and we’ll only ever allocate one agent to a case which means you’ll always have a point of contact that you’ll recognise. This is one of many reasons why we get some amazing reviews online from our customers.