There are inherent risks involved when you want to buy commercial real estate, and then there are several important factors should be taken into consideration when investing either your or your firm's money into a commercial property.
Those who are seeking to buy commercial real estate regularly understand that location is the key to whether or not the purchase will be successful.
Many renters and corporate shareholders of commercial real estate prefer a location close to their clients, employees, suppliers, and vendors to minimize transportation costs and to increase exposure to customers.
If you’re planning on renting to business, ensure that the commercial property is either attractive to potential renters or can be economically improved to become income-generating benefiting both parties.
Carefully assess the cost of repairs to the property before it can be used or rented out, and an accurate estimate the cost of those repairs and how long they should take to for completion.
As it is with every investment, time is money in commercial real estate. And if the property is not ready to be occupied immediately for whatever reason, then investing in it as a rental property or as an option to your present commercial location, it could turn into a costly mistake.
Access and Parking Issues
You also must make sure that any commercial property you are thinking of buying offers easy access to customers and has sufficient parking to accommodate them, as well as enough parking spaces for any staff that may also be located at the site daily.
Zoning and Improvement Limitations
Not all commercial properties are zoned for the same uses or can be allowed for specific improvements. It's recommended that you check with the local planning department to find out what the zoning laws of the commercial property you are interested in purchasing are and what it permits.
For instance, some commercial properties are located in industrial use zones, while others may be zoned for commercial office space or retail purposes. Additionally, some commercial properties that are located in a historic preservation district, and substantial changes to their facade would not be allowed.