The decision to purchase commercial real estate is a big one. It’s a huge commitment to own a commercial building, as well as a hefty investment for most. For these reasons, it should not be a choice that you make without a whole lot of serious thought. If you are a first-time buyer of commercial property, we’ve put together a list of some questions that you absolutely must ask yourself before you proceed.
Whether you are looking to purchase your commercial real estate property as an investment or whether you plan on using it for your own business, this is an important question to get clear on. It will help you determine the answers to a whole lot of other questions you are about to ask yourself. If you plan on buying it as an investment, do you plan on renting it out or fixing it up for resale? If you plan on using it for your own business, what sort of things must the space have to make it most adaptable to what you need it to be?
If you don’t plan to buy commercial real estate as an investment, you will really want to get clear on whether or not buying or leasing is in your best interest. There are a lot of benefits and downfalls to both. At the end of the day, only you can decide what the right answer to this is, but you will certainly want to give this question your due diligence before making any rash decisions.
Regardless of whether you are looking to purchase commercial real estate as an investment or for your own personal use, working with a partner is always something you should at least consider. Partnering with another person or company could help you to keep costs down, keep up with the building maintenance, and potentially purchase a larger space that you could use in different ways. Again, only you know the answer to this question, but it’s worth looking at.
Commercial real estate ownership comes with its own laundry list of to-do items. As a landlord (should you choose to rent the space out), you will be responsible for making sure everything is in consistent working order for the tenants, as well as taking the time to make sure that the space remains occupied by quality tenants. Running your own business out of a property you own also means that, should something go wrong, you are solely responsible for the repair. There are, however, significant tax breaks to consider on both ends.
Getting very clear on your financial state is a must if you intend to purchase commercial real estate. Commercial real estate comes with a lot of overhead that you may not initially think about. Not only does the space have to be maintained and repaired, as previously mentioned, but there are also the additional costs of property taxes, insurance, common area maintenance fees, grounds maintenance, and security, to name just a few.
Regardless of whether you are running a business out of your commercial real estate space or looking for tenants who will be running their business out of it, you’ll need to know who your audience is. As a business owner, you will want to make sure that your property is in close proximity to the people or businesses who will be buying your product or service. As a landlord, you will need to know the profile of the perfect tenant in order to showcase the space to them in the best light.
Whether you are seeking out commercial real estate as investment property or for your own personal needs, working with a qualified real estate advisor is an imperative move. At SVN | Graham, Langlois & Legendre, LLC, we pride ourselves on offering our clients the very best insights and market insider information around. Our team has worked diligently to learn the ins and outs of the local commercial market so that you can rest assured that you are in good hands. With our over 99-years of combined industry experience, you can’t go wrong working with any of our trusted team members. Peruse our database of available commercial properties today and reach out to get your search started.