Handy Tips for Commercial Real Estate Buyers
Buying business real estate is an intricate endeavor that is hard even for the experienced to time right to boost 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?
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.
There are several factors to look into when choosing a commercial real estate property to purchase. 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 most significant issue is still the location of the property. You’ll want to be as close to your customers, employees, and suppliers or vendors as possible. You must be convenient to everyone involved in your business, if you want to keep them there. 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.
Fitting the Purpose
If you are a law firm, business office space is obviously what you need. 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 Zoning laws, building codes or covenants may restrict certain changes or adjustments that you might be planning to make 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.
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.
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