Handy Tips for Commercial Real Estate Buyers
Purchasing commercial real estate is a convoluted venture that is tough even for the pros to time right to increase 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. Then again, we also understand that the prospective rewards can be substantial.
Why Buy Business 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 second benefit is gaining investment benefits – for example, property depreciation for tax-related purposes and, in time, appreciation of assets.
There are various factors to look into for anyone planning to buy a certain commercial real estate property. 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 crucial points to consider:
Where the property is located is still the main 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. At the same time, you may need access to rail, highway and shipping lanes, depending on the kind of business you are engaged in.
Once you have identified a prospective area, check how the property was used (think wear and tear), and whether environmental or potential liability issues, like lead paint, are in the picture.
Fitting the Purpose
If you are a law firm, business office space is obviously what you need. 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. 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.
Expansion or Leasing Opportunity
Lastly, entrepreneurs are generally optimistic about growth, and this the possibility of an expansion will be considered, along with the flip side. 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.