First investment into commercial property - Checklist?

Hi all.
I am in the process of making our first purchase into the world of commercial property.
The main purpose is to purchase the property for our own business to operate from however hoping to get some advice on everything we should be checking before signing contracts.
(yes we have appointments with solicitors, etc to ensure contract favours us as much as possible)

The property is 640m/2 metal clad industrial building with 20% mezzanine/office fitout.
Part of a strata complex (this building making up 52%)
There is a slight amount of work to be done to the outside of the building, replacing a few wall panels, etc.)

Just looking for any tips on other checks we should be doing to cover ourselves.
Our offer has just been accepted and going to arrange a building inspection before signing contracts.

What else should we be looking into?
Thanks in advance
Adam

 

Essential services compliance
Due diligence on all aspects of building
Valuation

Rgds
FXD

 

Read up on strata law so you dont have any surprises in the future. Just because you own 52% of the unit entitlements doesn't necessarily mean you have 52% of the vote, but it does mean you'll pay 52% of the strata costs.

- Definitely get a strata report and check for a healthy capital works (sinking) fund, previous disputes and planned expenditure.
- Check zoning of the property to make sure your business can operate there.

 

• Sinking fund will be negligible (commercial owners won't sit on lazy funds)
• Maintenance will be on you
• Usage is the biggie
• Check that you don't need BC consent for your usage or for leasing
• Consider putting it into a SMSF If it's not too late (the excessive rent you pay goes back to your pocket)

 

Make sure the building is fit for purpose within your strategic business operations.

Often owning a building for the business starts to define the strategy of the business. This can damage what is often your best performing asset (your business). Seperating the investment decision for a building away from the business strategy can make like a lot easier.