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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.

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. Still, on the other hand, we are all aware that the possible rewards can be huge.

Why Buy Business 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 other advantage is to enjoy investment benefits, such as property depreciation for taxation purposes and, eventually, 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:

The Community

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 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

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).

Suitability

If you are a financial services company, you clearly need commercial office space. If you are into manufacturing, you require an industrial space. Either way, research about and learn zoning requirements in the area, making sure thesewill let you do what you want to on the property.

Exterior and Interior Limitations

Now whether it’s because of building codes, zoning laws or covenants, there could be alterations that you are not allowed to do 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.

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 purchasing commercial property, determine whether or not you can lease out extra space, just in case your growth predictions fall short.