Handy Tips for Commercial Real Estate Buyers
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.
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 second benefit is gaining investment benefits – for example, property depreciation for tax-related purposes and, in time, appreciation of assets.
When buying business real estate properties, there are different factors that must be looked into. One, that classic adage “location, location, location” is equally true for commercial real estate as it is for family homes. 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 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 you are a financial services company, you clearly need commercial office space. If you are into manufacturing, you require an 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 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 example, if you buy a building in a historic area, there may be rules to follow when making changes to the facade.
Access and Parking
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.
Expansion or Leasing Opportunity
Finally, entrepreneurs usually have a positive outlook about growth, and this only means that the likelihood of expanding is a consideration, as is the opposite. 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.
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