Shifting from renting to owning commercial real estate is an exciting step for a business. However, there are several steps to follow before becoming a property owner. It is crucial to follow these tips to ensure your real estate decision allows your company to thrive.
It is helpful to list the benefits and drawbacks of purchasing real estate. Some of the positives to consider are the tax advantages, like the deductions for real estate taxes, utilities, insurance, and other expenses. However, you will be responsible for the cost of maintenance and repairs. It can also reduce the liquidity of your business, as well.
When trying to find the right property for your business, there are numerous aspects that can influence your choice. The most crucial characteristic is location. You want to make sure that the site is in close proximity or at least an acceptable distance to customers, employees, suppliers, and vendors. Retailers will need to have an adequate parking area for customers, while distributors will require a large loading dock. Make sure your company will also comply with the zoning laws and other rules for the property. It is also a good idea to consider the potential for expansion and if the location can accommodate for it.
Perform due diligence for the prospective location. This is to ensure that there are no problems that can cause trouble for your business later on. Engineers or other experts can inspect the property to alert you of any potential issues.