Getting involved in commercial real estate in Leeds can seem like an exciting opportunity – but it is hardly ever as simple as people imagine. When you buy a shop space, an office block, or move your business to a new premise; this process can quickly escalate to overwhelm. The reality is – there are many details to commercial deals, and if these details are not monitored; then you’re going to lose your hard earned cash, you’re going to lose sleep and you’re going to lose your mind!
Why due diligence is your safety net
This is called due diligence, and due diligence is your safety of net. The last thing you want to hear or find out after buying a property is that you are now responsible for an expense/liability that relates to the property, or you have a structural issue or dispute over ownership. And given Leeds has many older buildings often with a history/unexpected issues; due diligence is not a “tick the box” exercise – it’s your fundamental groundwork.
Zoning rules and restrictions
Another mistake many buyers without school communities make is not checking any zoning or usage regulations. A property may look suitable for your new café, but that doesn’t mean you can legally operate a café out of it. On the one hand, Leeds City Council has extensive planning rules, and breaching those rules can lead to biting fines eventually or worse, having your permits revoked. Investing time to understand the permissible usages of a property vs. those that are not, can save you a significant amount of hassle down the road.
The money side of the deal
Commercial property pricing can be a bit of a minefield. Overpaying as a result of lack of proper due diligence is probably the most common pitfall. A well-maintained office block may look appealing to be an absolute bargain until you investigate, only to find out the rental market (in that area) is not robust enough to stand against paying what you have agreed to pay. Before you sign off, it is crucial you gain some sort of assessment to check what you are paying for is worth the amount you are paying. Investigating into the financials will also aid in examining as to whether there are any other debts or ongoing liabilities associated with the property home and window renovation.
Final word
If you are making a purchase in commercial property and are excited about entering into the deal, it is important to look past the excitement of the purchase and check every detail for yourself, well-meaning third party. Ask all relevant questions, and visit legal counsel early in the process. Protecting your investment at the outset will always be less expensive than resolving issues after the fact.
