Tips for Buying Commercial Real Estate
Buying business real estate is an intricate endeavor that is hard even for the experienced to time right to boost their 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. Still, on the other hand, we are all aware that the possible rewards can be huge.
Why Buy Business Real Estate?
According to experts, buying commercial real estate offers more control over the the real estate part of overhead costs, in contrast to leasing, where you may end up with higher rental costs as the lease rolls over at a time when the market is tight. The other advantage is to enjoy investment benefits, such as property depreciation for taxation purposes and, eventually, asset appreciation.
There are several factors to look into when choosing a commercial real estate property to purchase. First of all, the traditional concept of “location, location, location” is perfectly applicable for business properties as it is for residential. Here are other important issues to take into account:
The location of your property remains the biggest issue. You’ll want to be as close to your customers, employees, and suppliers or vendors as possible. You have to be convenient to all who are part of your business, if you’d like them to remain. At the same time, you may need access to rail, highway and shipping lanes, depending on the kind of business you are engaged in.
As soon as you have pinpointed a potential area, research about the property, its wear and tear, and any possible environmental issues it may be involved in, including whether there are potential liability issues, like lead paint or asbestos.
Serving Your Purpose
If your business provides accounting services, you obviously need business office space. If you are a product manufacturer, you should look for industrial space. In any case, make sure you do some research and learn about the area’s zoning requirements and that these will not pose problems with what you need to do on the property.
Exterior and Interior Limitations
Now Zoning laws, building codes or covenants may restrict certain changes or adjustments that you might be planning to make on the property. When modifying the facade of a building in a historic area, for instance, there may be specific guidelines to follow.
Parking and Access
Choose a property that offers parking convenience to customers, as well as compliant access for beneficiaries of laws such as 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.