Our small business is looking to buy an office. We’ve found a possible candidate and through a variety of means, might be able to buy it without resorting to a mortgage.

The agent is disinterested in me as “you’re not a proper property person”! I’ve bought and sold our own home a couple of times, so have some awareness of the steps for residential but not sure what my key steps are now e.g. do I make an offer or is asking price the norm? I’m theoretically ready to do the idea from a finance point of view, presumably I’ll need some sort of legal representation? What’s the process of due diligence (survey etc)? There’s potentially some negotiation as it’s being built and will be finished as a shell, how does this work?

Any advice would be great. Thanks

You need to make an offer subject to survey and when it is accepted, you need to find a solicitor who commonly deals with such purchases.

Then you need to find a Surveyor who is used to looking at commercial space (they can all do it, but some specialise) to carry out a survey.

Depending on the nature and size of the building and age, it may or may not be very straight forward.

How many sq ft is it and how old?

Also if its a new build it will likely need an EPC before building control sign off, unless they sell/lease just a shell, then YOU will be responsible for the EPC at fit out stage, so beware if an air test is required and their standard of build is poor (i.e. if its your responsibility they may not care!).
If this sounds double dutch find a local commercial surveyor and double check legal side/lease.
Good luck with it all.
C

thanks – much appreciated. It’s 2000 sq/ft, new build, ground floor with 4-5 flats above. To me, it looks a good standard of finish (the flats are largely done) rather than basic.

And EPC, I’ll check up on – all new to me!

Energy performance cert. As its new it will be fine and up to current standards. In fact as its new, you really don’t have much to worry about if its all been certified, as it should have been.

Should be fairly straightforward, agent sounds a bit daft tbh – a sale is a sale. Yes you can definitely negotiate. As it’s new build do you have the approval for it to be used as office and do you know what the business rates will be. It would be worthwhile paying for some advice re:valuation as commercial property trades differently to residential. As it’s office how is the layout in terms of fitting out say air con, electricals, security etc and what might the alternative usage be if you wanted to sell it on, what is the likely rental if you wanted to let it out ?

agent sounds a bit daft tbh

I suspect that the agent would rather sell to someone that they could then be the letting agent for.

As it looks like part of the building check for any shared service charge costs, better if it is completely independent, but may share long term liability of roof for example, any shared services, building insurance (fire/flood etc).
Re EPC, as maybe let as a shell & core, they may try to get you to do the final EPC when fitted out, just check what stage it will be left at and hence your liability. Always good to go in with eyes open.

I suspect that the agent would rather sell to someone that they could then be the letting agent for.

Good point

thanks all – v helpful

Look on the savills auction site to see what past similar ones have gone for. I looked at buying commercial – there was a podcast on the property forum with the 2 robs last week, basic but Informative – get it free on itunes.

good luck, I dont know anything about commercial

Three things occur to me:
Does the unit you’re buying have planning class for your intended use?
Does the price you’ve agreed include V.A.T? (if not, are you V.A.T. registered so that you can claim it back?)
Any restrictive covenants in place that might affects our use? Less likely on a new build, but worth checking.

Any agent who’s turning his nose at any purchase in the commercial market at the moment is a mug, supply is far outweighing demand.

Agents got a friend in mind rather than you? If they continue to be obstructive try to contact the seller direct, even if s/he sends you back to the agent at least they now know you exist (in case the agent is not passing on your offers to the seller).