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. Still, on the other hand, we are all aware that the possible rewards can be huge.
Why Buy Business Real Estate?
Experts believe a commercial real estate purchase gives more control over a business’ overhead costs, whereas with leasing, your rental costs may go up with the lease rolling over with at a time when the market is least profitable. Yet another advantage is investment benefits, which includes the depreciation of the property for purposes of taxation and, in the longer term, 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 essential considerations to be made:
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. 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.
If you are a financial services company, you clearly need commercial office space. If you are into manufacturing, you require an 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, when planning to make any changes or alterations to the property, note that they will be subject to restrictions dictated by zoning laws, building codes or covenants. 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
Make sure parking will be convenient for your customers, and access is compliant with laws like the Americans With Disabilities Act.
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 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.