Handy Tips for Commercial Real Estate Buyers
A commercial real estate purchase is a complicated undertaking that is challenging even for professionals to time right to get maximum investment value.
Also, it a project that is overflowing with risk, with agents, buyers and sellers, and renters alike having to bear the brunt of sudden increases or decreases in demand. Then again, we also understand that the prospective rewards can be substantial.
Why Must a Business Buy Real Estate?
Experts believe a commercial real estate purchase gives more control over a business’ overhead costs, whereas with leasing, your rental costs may go up with the lease rolling over with at a time when the market is least profitable. The second benefit is gaining investment benefits – for example, property depreciation for tax-related purposes and, in time, appreciation of assets.
There are several factors to look into when choosing a commercial real estate property to purchase. First off, the age-old adage “location, location, location” couldn’t be truer for commercial properties as much as it is for homes. Here are other important issues to take into account:
Where the property is located is still the main issue. You’ll want to be as close to your customers, employees, and suppliers or vendors as possible. You must be convenient to everyone involved in your business, if you want to keep them there. At the same time, you may need access to rail, highway and shipping lanes, depending on the kind of business you are engaged in.
After determining a general location, check the property’s history in terms of wear and tear, environmental issues or possible liability issues (for example, the use of lead paint in older properties).
Fitting the Purpose
If you are a financial services company, you clearly need commercial office space. As a manufacturer, you have to look for industrial space. Anyhow, make it a point to research about and learn zoning matters, ensuring that these will not get in the way of what you’re planning to do on the property.
Exterior and Interior Limitations
Now, when planning to make any changes or alterations to the property, note that they will be subject to restrictions dictated by zoning laws, building codes or covenants. When modifying the facade of a building in a historic area, for instance, there may be specific guidelines to follow.
Parking and Access
Make sure parking will be convenient for your customers, and access is compliant with laws like the Americans With Disabilities Act.
Expansion or Leasing Opportunity
Finally, with the typical positive growth outlook they have, entrepreneurs are likely to consider the possibility of expanding, as well as the total opposite of this scenario . When purchasing business property, find out whether you have the option to lease any extra area, just in case business doesn’t work out as rosily as you have predicted.