Tips and Advice For Buying Commercial Real Estate
When it comes to buying commercial real estate for your business, you can never be too careful or overly methodical. The property you choose can have a significant effect on the future of your company. Even if you are buying it to lease out to other businesses, you need to make sure you are making a sound investment.
However, as a business owner yourself, you also know that saving money is one of your top priorities. Successful business owners are not made by throwing caution to the wind and paying exorbitant prices. You have to seek out, and in some cases, know how to create a good deal.
Here are our top tips on saving money and getting the property you need when buying commercial real estate.
Don’t Get in Over Your Head
First, we highly recommend starting slow, especially if you are a new business owner. Do not get in too deep with overhead costs. An amazing commercial property may be appealing to potential customers, but not if you cannot afford to keep the lights on.
Make sure you have a clear understanding of your budget when buying commercial real estate. Allow room for potential growth, but not so much that you are desperate to grow into it.
Hire an Experienced Commercial Real Estate Agent
It is important to have the right help when buying commercial real estate. You need someone who knows the area, the laws, the logistics, and the market. You need an experienced real estate agent.
They can help you find the right neighborhood where your business has better odds of flourishing and have plenty of connections to help you find good deals on everything from rent to contracting services.
Determine Your Priorities
Some of the most important factors to consider when buying commercial real estate is what you need it for. What are your top priorities?
While it sounds overly simplistic, here are some things to think about:
- How important is the location?
- How big of a space do you need?
- What type of space do you need (office, industrial, warehouse, etc.)?
- What building and coding laws are relevant to your business?
Understand All of the Costs
Next, you need to know all the costs involved in buying commercial real estate. For example, there are building and property taxes, common area maintenance requirements (landscaping, snow removal, etc.), utilities, amenities (internet, phone lines, etc.), insurance and more.
Don’t Be Afraid to Negotiate
Finally, in terms of wiggle room, most commercial real estate deals provide plenty. For example, for some commercial real estate renters, their landlords will allow up to three months of free rent while they are establishing their business.
When buying commercial property, you have a lot of room to negotiate with the seller. After the property inspection, you can ask for a lower price or for certain repairs or updates.
Looking for More Advice on Buying Commercial Real Estate?
If you are looking at buying commercial real estate any time soon, make sure you are well aware of the legalities of owning a commercial property. Alternatively, if you need legal help now, we know how stressful it can be. Contact us today for more information.