If you’re looking to buy or rent commercial property, it’s tempting to save money by cutting out the middleman, especially in the current climate. Since private sales are on the rise in the residential market to bypass agency fees, it could be safe to say this is also true of the commercial sphere. But in these tough times, you’re still going to be better off using a commercial property agent to locate a suitable property, rather than investing your own time and money. Read on to find out why.
Benefits of using a commercial property agent
Using a commercial property agent to locate suitable premises has a number of benefits as we’ll explain below.
Shows owners and landlords that you’re serious
Enlisting the services of a commercial property agent indicates to owners and landlords you’re serious about finding a commercial property. This especially applies to individuals, start-up companies, and successful overseas companies with no UK presence.
Helps narrow down your search area
It’s not easy to know where to start if you’re new to renting or buying commercial property. By using an agent you gain invaluable knowledge of the UK market and the best locations to search.
In general, if you want a small property in a specific location, a local firm will have more in-depth knowledge of market rents. However, if you want a number of units for retail shops or restaurants, it’s better to go with a larger commercial agency with more knowledge and experience in this area.
Contact database and access to ‘off-market’ opportunities
Once an agent knows your preferred location, size and type of property, price range, and any specific requirements, they can reach out to suitable commercial agents in their contact database. They can also directly approach property owners, companies and investment groups, as well as conduct searches on internet property sites only available to commercial agents.
If they have access to the Land Registry and off-market properties, it will further increase your chances of landing an ideal property. Although you might get lucky and your agent sources what you’re looking for in a few weeks, more often than not it can take months to find the right one.
This is where having an agent really comes into its own. You can get on with your life and wait for them to contact you when anything suitable comes on the market, or they hear about an off-market opportunity.
Assist with measurements and legal documentation
As well as finding a suitable property, an agent can ensure the measurements match up with the title, and that you’re getting exactly what you’re paying for. They will also check that everything is above board with the legal documentation and get all the paperwork signed off in a timely manner.
Check which professional services are included. A building survey, legal advice and a market appraisal are different services and may require separate appointments.
Agents charge only when a commercial property is found
Agency fees, payment triggers and included services depend on the agreed terms of engagement. Ask for a written quotation before instructing an agent.
Commercial property agent fees are varied but are usually based on the following structure:
Summary
Searching for a commercial property to rent or buy can be time consuming and often frustrating, but having an experienced professional by your side can make the process a lot easier. If you’re considering going it alone, save yourself the hassle and contact a commercial property agent instead.
Putting this advice into practice
Start with the property and the decision you need to make. Gather the relevant documents, identify the costs and questions that remain, and agree who will check each point before you commit.
For property-specific support, explore our professional services or commercial valuations and advice. You can also browse current properties.
Read the relevant GOV.UK guidance alongside advice for your circumstances.
Need help with your next step? Speak to the PSS Commercial team about your property, timescale and requirements.