Buying commercial real estate is different than buying residential real estate. Whether you are planning to buy something as an investment or for your business headquarters you need to be aware of some key factors. Picking the right commercial real estate property can help your profits soar and set you up for success. Picking the wrong one can set you back years. Here are a couple of things you need to keep in mind when buying commercial real estate property.
Commercial real estate can be a tricky market. When it comes to finding a place to run your business no two properties are alike. You’re going to need to be specific about your wants and needs. Importantly, no decision about commercial real estate can be taken lightly. Consider how this property will affect your business structure, your employees, and your customers. Will this property help you provide a better service, or help your customers in some way? Much like running any business, you’ll find that the small details can matter the most.
If you are looking at this as an investment, consider what you want out of this property not only in dollar terms but in ease of management. Is the building new and easy to sell? Are you aiming to fill the space with other businesses or is it an apartment building? Knowing these things can help you determine how much of your time you will need to put into the business.
Normally when purchasing real estate, you work with a lender and a real estate agent. When it comes to buying commercial real estate, you’re going to need a few more people on your team. You’ll still need a great commercial real estate agent, but also a real estate lawyer, accountant, mortgage broker, and more might be needed to seal the deal on a potential property.
Each one of these members will play an important role in the purchase. A lawyer will help you work out the legal rights to owning the building. An accountant, preferably a CPA, can help you navigate coming up with the capital to purchase the building and taking advantage of the tax benefits. They can also help you research whether this building will be a worthwhile investment. A mortgage broker will help you secure the funding for the purchase usually at the best deal possible. You need a commercial property that helps you in multiple ways, and having a team on your side helps you find one that does.
When it comes to buying commercial real estate, location is still one of the most important factors. Why? Location will allow you to reach customers easily. The easier you are to locate the easier customers can get to you. Location will also dictate how many people can see you on a regular basis. On a more practical level, location affects how supply chains will reach you and can affect time frames. You don’t want to pick a location for a business that’s hard to get to if your business relies on heavy foot traffic. Instead, do your research. Location affects just about everything, from taxes to the crowd you can expect on a Saturday night – which leads us to our final point.
Before buying commercial property, you need to be sure that the investment you are making is a good one. Knowing the history of a property can help you determine what type of foot traffic you can expect, and whether the building has experienced damage of any kind. If you do find damage the building could need extensive repairing. Additionally, the building could have mold or wear and tear that needs to be dealt with. Before selecting any property make sure that you have all the facts.
Are you looking at buying commercial real estate for your business or as an investment? Want to find a place that is perfect for your needs? MWT Realty can help you do just that! We have licensed professionals that help walk you through the process and make sure you choose the best place for your business. Contact us today to find out how we can help you!