Tips for Purchasing Business Real Estate
A commercial real estate purchase is a complicated undertaking that is challenging even for professionals to time right to get maximum 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. Still, on the other hand, we are all aware that the possible rewards can be huge.
Why Buy Business 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.
There are several factors to look into when choosing a commercial real estate property to purchase. First of all, the traditional concept of “location, location, location” is perfectly applicable for business properties as it is for residential. Here are other important issues to take into account:
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. But depending on the nature of your business, you may need access to highway, rail, and shipping lanes too.
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.
Fitting the Purpose
If you are a law firm, business office space is obviously what you need. If you are into manufacturing, you require an 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 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. For instance, when buying a building in a historic area, you may have to follow rules when you want to modify the facade.
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.
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 business property, find out whether you have the option to lease any extra area, just in case business doesn’t work out as rosily as you have predicted.
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