Things to Look Out For When Purchasing Commercial Property
Purchasing a commercial property signifies you taking a large financial step. No matter what your reason may be for procuring a commercial property, it’s important that you’re aware of what to look out for. Many novice acquirers of commercial property make mistakes that take months and sometimes years to correct, potentially affecting finances in the process.
When it comes to acquiring a property, it’s all about getting what you paid for. In today’s blog, we’re going to take you through some of the important aspects of commercial real estate that need to be brought to your attention in order to find success when shopping for a property. With our help, you can avoid the pitfalls that many have fallen in before you.
Number 1: Location and Proximity
If you’re dealing in real estate then you already know the importance of location. However, one aspect that many people tend to forget is proximity. By that, we mean how close your property is to other locations of significance. For example, even if your property is located in a great neighborhood, it might too far from home or clients.
In the event that you make deliveries, the farther you are from clients, the more you’re going to have to allocate resources towards car fare and transportation. Depending on how close or far you are to a common location, more expenses might need to be accommodated.
Don’t let the idea of a beautiful location blind you from the reality that your business needs to be conducted with its finances in mind.
Number 2: Amenities
One of the most exciting parts of purchasing a new property is seeing everything it has to offer. Purchasing a property with all the bells and whistles may sound nice but it can also run up your budget. Remember, the more amenities, the higher the asking price. It’s here where you really have to ask yourself what’s important to you.
You can save a little money by purchasing a property with only one bathroom and no break room but think about how that’s going to affect your employees.
Yeah, you can validate parking but that’s money that’s coming out your pocket every month. Really sit down ask yourself what you need versus what you want out of a property before making a decision. Your financial health can depend on it.
Number 3: Size & Possible Expansion
Now size might sound like a given but hear me out. As a business, your goal is to continuously grow and expand. That being said, you shouldn’t bite off more than you can chew. By stating that, we mean that it’s probably not wise to purchase a 300 square-foot property when you’re just starting out.
Sure, you plan on hiring more employees and filling the space but take your time. There’s no point in paying more money for space you’re not even using yet. While thinking ahead is always a good thing, don’t try to predict the future.
Focus on where you’re currently situated and what you can afford. If you’re smalltime, look into a small property. When the time comes, you can always purchase more space.
Number 4: Property Value
An important aspect of the buying process is thinking about the idea of selling. There’s a sizable chance that you won’t be keeping this property forever, which is why it’s essential that keep track of the property value. There’s nothing worse than having to sell a property for less than you bought it for.
Understanding how property value works is the key to coming out on top if the day ever does come when you’re ready to sell. Bring in a real estate professional of your own to assess the value of your prospective property and estimate what direction it’s headed in.
This is can be a make-or-break in the purchasing decision process so ensure that you are not cutting any corners.
Number 5: Your Options
Keep in mind that there are literally commercial properties everywhere you go, especially in the state of New York. Never feel that you have to make a decision you’re uncomfortable with due to your lack of options. There’s no such thing.
As a purchaser, you hold all of the power. If you don’t like what you’re being offered, move on to the next one. Many buyers find themselves in trouble because of the pressure that can stem from purchasing a property.
Take your time, consider your options, and move to the beat of your own drum. Trust us, you’ll be just fine.
Best of Luck in your search!
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