Questions to Ask Yourself When Buying a Commercial Property
Purchasing a commercial property is far from a simple process. With so many properties out there, your next purchase you either be the best or worse decision yet. Now, I’m not trying to frighten you but it is important that you think about a few factors before you make a decision.
Success in commercial real estate is mainly about being well-informed. That being said, there are a few questions you should ask yourself as well as your broker when searching for prospective properties. Allow us to take you through a few.
The following questions should provide some clarity in terms of simplifying your commercial property search.
What Can I Afford?
Without knowing what kind of property you can afford, you’re practically stuck in the mud. Finding the perfect property means nothing if it’s out of your price range. Before you even begin your search, you should be tapping your wallet and asking yourself two questions. How much money do I have, and how much can I spend?
Knowing how much spending power you possess should serve as the foundation of your property search. This allows you to craft a budget structure that will enable you to effectively allocate your resources.
Speak with your accountant, bookkeeper, spouse, or whoever manages your finances. Without the right amount of capital, your dreams of owning a new property will be stalled.
Where Do I Want to be Located?
You know what they say about real estate and location. Besides cost, location is the most important factor when purchasing a property. Depending on where you’re located, conducting business can either simple or difficult. Finding a property in the city may be more convenient but end up costing you more in the long run.
Conversely, choosing to purchase a property in a more suburban area may be a cheaper venture but will making commuting and conducting business more daunting. Before you begin your search, really sit down and think about where you want to purchase your property.
That also means being prepared for the baggage that comes along with it. No matter where you choose for your business to reside, there will always be pros and cons so decide carefully.
How Long Will the Transition Take?
Sometimes people get so caught up with the idea of moving that they forget to ask themselves a very important question. How long is the entire process going to take? Keep in mind that if you’re moving your business from one location to the next that means it’s probably not running at full capacity.
That eventually translates into a loss of profits. If you have to move, you have to move but it’s vital that you’re aware of the duration of your move so that you can plan accordingly. The moving process can take anywhere from three weeks to two months to complete.
During that time, your customers aren’t going to be receiving the same level of care that they’re used to. It’s not your fault – it just comes with the territory. However, by staying one step ahead of your move-in date, you can potentially place yourself in a less stressful position.
Who will be in Charge of the Transition Process?
Are you overseeing the move-in process? Is someone else? If so, who? These are all questions you should be asking yourself when searching for a new property. Don’t worry about getting ahead of yourself. It’s called preparation. As a manager of a business, you might have a lot of tasks on your agenda as is.
Adding business transition oversight to your list of duties might just be the thing to cause you to melt down. Instead of trying to take on the world by yourself, think about who would be a good fit to take on this responsibility.
Successful commercial real estate transactions stem from knowing when to ask for assistance. With the right help, you’ll be able to find the property of your dreams while continuing to manage your business.
What Features Am I Looking For?
Every property is different and as such, they can come with distinct features. Some come with valet parking, others with rooftop access. When it comes down to choosing which properties are going to make the cut, it really boils down to what is important to you.
Do you need a back entrance for deliveries? How many bathrooms would you like? Are you willing to pay a little extra so that you work in the building with a built-in deli? Features and amenities are like the icing on the cake when it comes to choosing a property.
They seem like minor additions at first but they can make a world of difference when you actually begin operating out your new property.