Buying commercial real estate--whether for investment or for your own business--can be a different task than buying residential real estate. If you're new to the process of buying a commercial property, here are 5 things to look for.
Location. Of all the aspects of a commercial property, the one that cannot be adjusted or fixed is the location. The adage, "location, location, location," is true for a good reason. You likely need to be visible to costumers and in a neighborhood that attracts clients. In addition, depending on your business type, you may need to focus on how much foot traffic or car traffic the spot enjoys. Think like your potential customer pool and ask yourself what they would be looking for.
Parking. Most modern businesses also need to concern themselves with the ability to easily enter a lot by car and find comfortable parking. Not having sufficient parking can deter customers from stopping. If you're in a downtown area, what other businesses do you share parking with, and how will you allot spaces? What nearby residences might overflow into your area? And is the parking compliant with all applicable Americans with Disabilities Act (ADA) requirements?
Zoning. Commercial zoning restrictions can be more arduous than residential laws. You may be limited on what type of business can be placed in that real property as well as what changes you can make to the building's façade or surrounding lot. Check with city planning offices before signing any contracts for commercial lots.
Expansion. You want your business to thrive and grow. And when locating a property to place it on, it's a good idea to keep one eye on the future. How would your building or parking lot be able to accommodate future expansion? This could be solved if you have the ability to add more parking, to expand the physical building, or to expand into a neighboring commercial space.
Condition. Finally, the basic structure of the building should meet your minimum standards. Many aspects of business spaces can often be altered to suit your needs as long as it has solid "bones". These bones generally include the frame, foundation, roof, wiring, plumbing, and parking lot base. Look beyond any wear and tear that you can easily fix, but do pay attention to how the building has been updated and modernized over time.
By knowing how a commercial real estate purchase differs from what you're used to with house buying, you can help ensure that you choose just the right property to make your investment pay off for years to come. Contact an agency, like Davis Driver Group RE/MAX PLATINUM LIVING, for more help.
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