Buying commercial real estate requires much thought and planning. After all; it could either be “home base” for your growing business, or simply a very large financial investment. As the market continues to diversify and expand, you may wonder how it could affect your ability to buy commercial real estate. In this blog post, we’ll take you through our advice for exploring commercial property in the current economy.
Anywhere you look to buy commercial property, there are sure to be logistical specifications. Nearby communities, businesses and services determine many things, such as foot traffic, road traffic counts, consumer behaviour, and promotion ability.
If you’re a hamburger restaurant, for example, you wouldn’t want to place your business within close range of any large corporate chains that could steal potential customers. You would also likely want to settle on the corner of a busy intersection of a thriving community, rather than a side street. While there may not be an abundance of options, do assess the environment as closely as the location. We have commercial agents that can help you find the best place.
Tax rates can vary based on where you choose to buy. Your property can also appreciate or depreciate like any other lot. Interest rates have been on the rise and some markets may currently be inflated. These are all important factors to consider, as they will affect employee salaries and profit margins.
Before looking at any properties, you first need to determine how much space you’ll need – and for what. Layout is extremely important in the operation of your business, as it can determine the efficiency at which you’re able to produce a product or service. You need to understand what an optimal floor plan would look like, as well as any sizing requirements for any large machinery or tools you may need.
Layout needs aren’t exclusive to the interior of your business. You’ll need to plan things like signage, parking, displays and any promotional material to attract potential customers to your business.
Consulting an accountant, lawyer and of course your REALTOR® to discuss financial specifications can help you understand your budget, inside and out. Professionals can also ask questions and paint a picture of your financial situation, maximizing affordability while still finding what you need. These professionals can assist you to verify that any hidden or additional costs have been considered.
If you’re purchasing a lot to build upon, make sure to first verify that it contains suitable zoning for your use and hire well-renowned planners and builders with experience and knowledge of the industry.
Whether you’re buying commercial property as an investment or looking for the perfect spot for your growing business, you’ll want to be as prepared as possible. Hopefully, this blog has given you some advice that can help fine-tune your buying process. We wish your business the best! Reach out if you have any questions, our agents are here to help.