Buying business real estate is an intricate endeavor that is hard even for the experienced to time right to boost their 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. Still, on the other hand, we are all aware that the possible rewards can be huge.
Reasons For a Business to 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. Yet another advantage is investment benefits, which includes the depreciation of the property for purposes of taxation and, in the longer term, asset appreciation.
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 must be convenient to everyone involved in your business, if you want to keep them there. However, depending on the type of business you have, rail, highway and shipping lane access may prove important as well.
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).
Fitting the Purpose
If you are a law firm, business office space is obviously what you need. If you are a product manufacturer, you should 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. When modifying the facade of a building in a historic area, for instance, there may be specific guidelines to follow.
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, 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 purchasing commercial property, determine whether or not you can lease out extra space, just in case your growth predictions fall short.