Tips for Purchasing Business Real Estate
Buying business real estate is an intricate endeavor that is hard even for the experienced to time right to boost their investment value.
Also, it a project that is overflowing with risk, with agents, buyers and sellers, and renters alike having to bear the brunt of sudden increases or decreases in demand. But of course, we all know that the potential rewards can be considerable.
Reasons For a Business to Buy Real Estate
Professionals believe purchasing business real estate provides greater control over the the real estate portion of overhead expenses, versus leasing, which could raise your rental costs when the lease rolls over at a period when the market is hardly favorable. The other advantage is to enjoy investment benefits, such as property depreciation for taxation purposes and, eventually, asset appreciation.
There are various factors to look into for anyone planning to buy a certain commercial real estate property. One, that classic adage “location, location, location” is equally true for commercial real estate as it is for family homes. Here are other important issues to take into account:
Where the property is located is still the main issue. You have to be within close proximity to your suppliers, employees, and most importantly, your customers. You should be convenient to all these people if they are to come to you. But depending on the nature of your business, you may need access to highway, rail, and shipping lanes too.
Once you have identified a prospective area, check how the property was used (think wear and tear), and whether environmental or potential liability issues, like lead paint, are in the picture.
Fitting the Purpose
If your business provides accounting services, you obviously need business office space. If you are into manufacturing, you require an industrial space. Anyhow, make it a point to research about and learn zoning matters, ensuring that these will not get in the way of what you’re planning to do on the property.
Exterior and Interior Limitations
Now, when planning to make any changes or alterations to the property, note that they will be subject to restrictions dictated by zoning laws, building codes or covenants. When modifying the facade of a building in a historic area, for instance, there may be specific guidelines to follow.
Parking and Access
You must ensure that your customers will be able to park conveniently and that access is compliant with the Americans With Disabilities Act and other similar laws.
Expansion or Leasing Opportunity
Finally, with the typical positive growth outlook they have, entrepreneurs are likely to consider the possibility of expanding, as well as the total opposite of this scenario . When purchasing business property, find out whether you have the option to lease any extra area, just in case business doesn’t work out as rosily as you have predicted.
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