Choosing the Right Commercial Real Estate
November 24, 2017
There are many considerations that need to be made when deciding on commercial real estate. The following article outlines some of the most commonly taken paths needed to take in order to make a quality commercial real estate choice.
Find the Right Location
Whether you are looking for commercial property in San Diego, CA or for land development cincinnati oh, it is vitally important to find a location that is close to your customers and partners. It’s is also worth considering proximity to transit and not too far from your employees’ homes if possible. Know whether the space is in a commercial, industrial, or residential zone. Location is often considered the number 1 most important factor when choosing commercial real estate.
How broken-in is the physical condition of the property? Keep a lookout for any wear and tear or additional liability issues, such as lead paint or asbestos. Also make sure the space fits your needs. Goes without saying, but if you have lots of tall people, you would value high ceilings over lower ones.
Any big-ticket life purchase has its fair share of risk, and commercial real estate is no exception. Aside from the possible liabilities in the physical space, also consider the neighborhood crime rates, density, and demographics. Also consider terms of mortgage and decide how long you plan on staying there. Despite all these considerations, the market could still go against your favor, such as gentrification slowing down. Keep these factors in mind to avoid getting caught up in word-on-the-street hype.
Opportunity for Renting Out Space
In this day in age, coworking spaces and shared work spaces are becoming more and more popular. Make sure to take this into consideration when buying space. Having additional space to rent out would help offset some of the cost if the face-value price seems too high at first.
Rally a Team
You will need lots of expertise on your side when making a large decision such as choosing commercial real estate. According to Inc., you will need at least the following on your side: Accountant, to help with budgeting and taxes; Lawyer, to help with negotiations and closing with the seller and lender; Commercial broker, to help find a good deal; and the mortgage broker, to assist with financing.
Take Your Time
Finding good commercial real estate takes time. With all of the considerations listed above, rushing into a buy is not something worth doing. However, with astute planning and taking mind of all factors, you can have peace of mind that you did all you could to ensure a quality buy.
No matter where you are currently in the process of choosing commercial real estate, it is never too early to start planning. With all of the options and brokers out there, getting started may feel a bit daunting. However, when considering all of the above factors – Location, Condition, Assessing Risk, Rental Opportunities, Your Team – you can ensure that you have done your due diligence on finding that perfect space.