Purchasing commercial real estate can be a lucrative investment, whether you intend to rent out the space or use it for your own business. In many areas of the country, real estate professionals expect the commercial real estate industry to grow.
According to the National Association of REALTORS®, even though interest rates have gone up recently, those in real estate expect the commercial real estate industry to continue to expand. If you intend on purchasing commercial real estate, the following stages must occur before you finalize the sale.
The escrow process for commercial real estate transactions is typically more complicated than those for residential property. This occurs mainly because during commercial real estate transactions, the funds to make the purchase come from several sources.
2. Due diligence
Before you close on a commercial real estate property, you must do your due diligence. Depending on the property, this may include having a property survey conducted, inspecting all the building’s structures, carefully reviewing the purchase contract and identifying the area’s zoning rules.
To finalize your commercial real estate purchase, there are several documents you must sign during closing. Some of these documents may include deeds, environmental reports, assignments of leases, warranties and zoning disclosures.
Before signing anything during closing, make sure you carefully review all documents related to your purchase to ensure they include accurate information. Although it may take some time to complete your real estate transaction, investing your time and attention during the sale can help you make a beneficial investment.