Tips for Buying Commercial Real Estate
A commercial real estate purchase is a complicated undertaking that is challenging even for professionals to time right to get maximum investment value.
It’s likewise a project abundant with risks, with the lows and highs in demand affecting everyone, from buyers to sellers to renters and all agents in between. Then again, we also understand that the prospective rewards can be substantial.
Why Buy Business 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. Yet another advantage is investment benefits, which includes the depreciation of the property for purposes of taxation and, in the longer term, asset appreciation.
There are several factors to look into when choosing a commercial real estate property to purchase. One, that classic adage “location, location, location” is equally true for commercial real estate as it is for family homes. Here are other important issues to take into account:
The location of your property remains the biggest issue. You need to be as close as possible to your clients, workers, and suppliers. You must be convenient to everyone involved in your business, if you want to keep them there. However, depending on the type of business you have, rail, highway and shipping lane access may prove important as well.
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 your business provides accounting services, you obviously need business office space. If you are into manufacturing, you require an industrial space. Either way, research about and learn zoning requirements in the area, making sure thesewill let you do what you want to 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
You must ensure that your customers will be able to park conveniently and that access is compliant with the Americans With Disabilities Act and other similar laws.
Leasing or Expansion Options
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 commercial property, determine whether or not you can lease out extra space, just in case your growth predictions fall short.