Buying a commercial real estate property is not something you jump into lightly.
Consider some critical elements of the property and the buying process before you sign the dotted line.
Think critically about the location
Location is a defining component of a business’s success. You may pay a premium price for a high-traffic area, but that means making more money as a business or lease owner. Thinking critically about location also means it is sometimes more sensible to pay less for a spot off the beaten path. For example, if you are a professional who mostly does business by appointment only, a brick-and-mortar location is not as critical to you as it is to a retailer.
Consider the cost of modifications
Does the property you want suit your needs? For example, will you need to make significant and costly renovations to make it accommodating to operations? Is the property a historical site that you cannot modify? Even if you intend to rent the location, that could be an issue for future tenants. Get estimates for necessary repairs before committing to buying.
Know the taxing structure
Taxes vary significantly from city to city. Some municipalities even collect substantially more taxes on properties just streets apart. When you consider common factors affecting revenue, such as utilities and infrastructure, include taxes in your decision-making process as well.
Thinking ahead is even more critical when buying commercial property compared to residential. Enter the search with a business plan and a map for company goals.
