Tips for Purchasing Business Real Estate
Buying business real estate is an intricate endeavor that is hard even for the experienced to time right to boost their investment value.
As well, it’s a project replete with risk, as everyone involved in the picture – from buyers to sellers to agents to renters – can suffer the negative consequences of a drop or surge in demand. But of course, we all know that the potential rewards can be considerable.
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. The second benefit is gaining investment benefits – for example, property depreciation for tax-related purposes and, in time, appreciation of assets.
There are various factors to look into for anyone planning to buy a certain commercial real estate property. One, that classic adage “location, location, location” is equally true for commercial real estate as it is for family homes. Here are other crucial points to consider:
The Community
Where the property is located is still the main issue. You need to be as close as possible to your clients, workers, and suppliers. 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.
Physical State
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.
Serving Your Purpose
If your business provides accounting services, you obviously need business office space. 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, 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 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
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.
Leasing or Expansion Options
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 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.