How to Buy Commercial Real Estate
If you already understand the risks involved when you buy commercial real estate, then several important factors should be taken into account when investing either your or your company's money into a commercial property.
Location Those who buy commercial real estate regularly know that location is a key determinant of whether or not the purchase will ultimately turn out to be successful.
Most renters and corporate owners of commercial real estate want to be located as close as possible to their clients, employees, suppliers and vendors in order to minimize transport costs and maximize exposure to customers.
If you plan on renting to a business, make sure the commercial property is either attractive to potential renters or can be economically improved to be attractive.
Condition Take the time to assess carefully how much repair the property requires before it can be effectively used or rented out, how much those repairs are likely to cost and how long they should take to be completed.
As with most investments, time is money in commercial real estate, and if the property will not be ready to be occupied soon for some reason, then investing in it as a rental property or as an alternative to your current commercial location could turn out to be a costly mistake.
Access and Parking Issues You need to make sure that any commercial property you are considering buying offers easy access to customers and sufficient parking to accommodate them, as well as enough parking spaces for staff that might be employed on site.
Zoning and Improvement Limitations Not all commercial properties are zoned for the same uses or are able to be permitted for certain improvements. You will want to check with the local planning department to find out what the zoning of the commercial property you are interested in purchasing is and what it permits. For example, some commercial properties are located in industrial use zones, while others might be zoned for commercial office space or retailing purposes. Still other commercial properties may be located in a historical preservation area and hence substantial changes to their façade would not be permitted.
The following sections cover some of the more important items to consider before you buy commercial real estate. A professional commercial real estate agent can provide you with further advice.
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