Owning a commercial property can be a great investment, whether you’re an already-established business, or just starting out. Buying commercial property can be complex for even experienced buyers, but if this is your first time, here’s what you need to know:
Know what kind of commercial property you need
Before investing in commercial real estate, know what type you need. For example, if you want to own your own apartment buildings, you wouldn’t invest in an industrial property. Commercial properties include:
- Multifamily
- Office space
- Retail
- Industrial
- Hospitality
Once you know what type of property best fits your needs, you have to consider:
- Location: Is the property located in a place that is convenient for you, your employees, and customers? A good location will mean your business is visible and accessible.
- Zoning laws: Research what can and cannot be done on the property and what it’s zoned for.
- Physical state of the property: Is the property in good condition or will you need to make updates? This can affect how much you’ll need to invest in the property.
- Parking: What is the state of parking on the property? Do you only need parking for employees, or are you also expecting customers? Be sure there’s ADA-compliant parking.
- Flexibility: Will you be able to expand your space in the future, if needed? If you don’t use all your space, can you rent it out?
Know how much you can afford
It should go without saying that before buying a commercial property, you should know how much you can afford. Research how much property taxes are in your desired area so you can get an idea of what to expect in the long run.
Secure financing from a lender
Before you even begin searching for a commercial property, you need to find a lender. A good lender will offer options that align with your credit score and provide an affordable interest rate. You will want to ask if they will want collateral as well.
Hire a professional with knowledge of buying and selling commercial properties
When searching for the best commercial property for your needs, you need someone at your side. Hiring a professional real estate agent like those at Merchant of Homes means you get someone who is experienced in commercial properties and will advocate for you.