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. But of course, we all know that the potential rewards can be considerable.
Reasons For a Business to Buy 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.
When buying business real estate properties, there are different factors that must be looked into. First of all, the traditional concept of “location, location, location” is perfectly applicable for business properties as it is for residential. Here are other crucial points to consider:
The location of your property remains the biggest issue. You need to be as close as possible to your clients, workers, and suppliers. You should be convenient to all these people if they are to come to you. But depending on the nature of your business, you may need access to highway, rail, and shipping lanes too.
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.
If your business provides accounting services, you obviously need business office space. As a manufacturer, you have to look for 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 whether it’s because of building codes, zoning laws or covenants, there could be alterations that you are not allowed to do 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 buying business property, know whether or not you will be able to lease out unused space, in the event that you fall short of your growth forecasts.
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