Buying business real estate is an intricate endeavor that is hard even for the experienced to time right to boost their investment value.
It’s likewise a project abundant with risks, with the lows and highs in demand affecting everyone, from buyers to sellers to renters and all agents in between. Then again, we also understand that the prospective rewards can be substantial.
Why Must a Business Buy Real Estate?
Experts believe a commercial real estate purchase gives more control over a business’ overhead costs, whereas with leasing, your rental costs may go up with the lease rolling over with at a time when the market is least profitable. Yet another advantage is investment benefits, which includes the depreciation of the property for purposes of taxation and, in the longer term, asset appreciation.
When buying business real estate properties, there are different factors that must be looked into. 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 location of your property remains the biggest 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. However, depending on the type of business you have, rail, highway and shipping lane access may prove important as well.
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.
Fitting the Purpose
If your business provides accounting services, you obviously need business office space. As a manufacturer, you have to look for industrial space. In any case, make sure you do some research and learn about the area’s zoning requirements and that these will not pose problems with what you need 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 instance, when buying a building in a historic area, you may have to follow rules when you want to modify 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.