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?
Professionals believe purchasing business real estate provides greater control over the the real estate portion of overhead expenses, versus leasing, which could raise your rental costs when the lease rolls over at a period when the market is hardly favorable. The other advantage is to enjoy investment benefits, such as property depreciation for taxation purposes and, eventually, asset appreciation.
There are various factors to look into for anyone planning to buy a certain commercial real estate property. First of all, the traditional concept of “location, location, location” is perfectly applicable for business properties as it is for residential. Here are other essential considerations to be made:
The location of your property remains the biggest issue. You have to be within close proximity to your suppliers, employees, and most importantly, your customers. 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.
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).
Serving Your 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 Zoning laws, building codes or covenants may restrict certain changes or adjustments that you might be planning to make on the property. For instance, when buying a building in a historic area, you may have to follow rules when you want to modify the facade.
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.
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 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.