Manchester is a vibrant and dynamic city that offers many opportunities for businesses of all sizes and sectors. The city has a talented labour pool, a growing population and significantly lower occupational costs than London. However, buying or leasing a commercial property in Manchester is not a simple decision and requires careful planning and research. Here are some common mistakes to avoid when looking for a commercial property in Manchester.
Not having enough knowledge of the market. One of the biggest mistakes when buying or leasing a commercial property is not having enough knowledge of the market. You need to understand the supply and demand conditions, the rental and capital values, the vacancy and availability rates, the location and accessibility factors, and the future trends and developments in the area. You can use online tools such as CBRE UK or Cushman & Wakefield to get the latest market reports and insights on the Manchester office, retail and industrial sectors.
Buying or leasing during the wrong cycle. Another common mistake is buying or leasing a commercial property during the wrong cycle. The commercial real estate market is cyclical and influenced by various economic, political and social factors. You need to be aware of the current and projected market conditions and how they affect your business objectives and budget. For example, if you are looking for a long-term investment, you might want to buy a property when the market is at the bottom of the cycle and sell it when it is at the peak. If you are looking for a short-term occupancy, you might want to lease a property when the market is soft and rents are low.
Not being familiar with the commercial property type. Different types of commercial properties have different characteristics, requirements and challenges. You need to be familiar with the specific features, standards and regulations of the property type you are interested in, such as office, retail, industrial, warehouse, hotel, etc. You also need to consider the suitability, functionality and adaptability of the property for your business needs and preferences. For example, if you are looking for an office space, you might want to consider factors such as layout, design, lighting, ventilation, technology, amenities, etc.
Falling in love with the property. It is easy to get emotionally attached to a property that seems perfect for your business. However, you need to be objective and rational when evaluating a commercial property and not let your emotions cloud your judgement. You need to look beyond the appearance and aesthetics of the property and focus on its value, potential and risks. You also need to compare different properties and options before making a final decision.
Not having professional guidance. Buying or leasing a commercial property is a complex and costly process that involves legal, financial and technical aspects. You need to have professional guidance from experts who can help you navigate the market, negotiate the best deal, conduct due diligence, handle paperwork and contracts, etc. You should consult with a qualified commercial realtor who has experience and knowledge of the Manchester market3. You should also seek advice from a solicitor, an accountant, a surveyor, an architect, etc., depending on your specific needs.
Not thinking of operating expenses. When buying or leasing a commercial property, you need to think of not only the initial purchase price or rent but also the ongoing operating expenses. These include maintenance costs, utility bills, insurance premiums, taxes, service charges, etc. You need to have a realistic budget that covers all these expenses and allows for contingencies. You also need to negotiate favourable terms and conditions with the seller or landlord that minimise your liability and maximise your benefits.
By avoiding these common mistakes, you can find a commercial property in Manchester that suits your business goals and expectations. Manchester is a great place to invest in commercial real estate as it offers a diverse and dynamic market with strong growth potential. However, you need to be careful and strategic when buying or leasing a commercial property in Manchester as it can have a significant impact on your business success.