Tips for Purchasing Business Real Estate
Purchasing commercial real estate is a convoluted venture that is tough even for the pros to time right to increase 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. But of course, we all know that the potential rewards can be considerable.
Why Must a Business 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 other advantage is to enjoy investment benefits, such as property depreciation for taxation purposes and, eventually, asset appreciation.
When buying business real estate properties, there are different factors that must be looked into. 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 essential considerations to be made:
The Area
The most significant issue is still the location of the property. 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. But depending on the nature of your business, you may need access to highway, rail, and shipping lanes too.
Physical State
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.
Serving Your Purpose
If your business provides accounting services, you obviously need business office space. As a manufacturer, you have to 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, 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. When modifying the facade of a building in a historic area, for instance, there may be specific guidelines to follow.
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 commercial property, determine whether or not you can lease out extra space, just in case your growth predictions fall short.
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