If you are in the market to purchase some commercial property for your business or as an investment, then there are some things you need to consider before you make a purchase offer. Buying commercial real estate is a big risk, so before you jump into the deep end of the real estate pool, first ask yourself each of these three questions about any property you are considering:
1. How Has the Property in Question Performed Historically?
When you are looking into the value of a piece of commercial property, then it is important to know how it has historically performed on the market and how its rent value has been. Just as you would for a house you intend to rent out, you want to know not only the value of the commercial real estate, but you also want to know how much it will rent for in the future if you choose to go that route.
2. Does the Property Have Any Existing Leasees?
Depending upon the purpose of your commercial real estate purchase, you may or may not want to buy a building that has existing leaseholders. If there are leasees in the building, then you need to determine how long their leases are, how much their monthly rent is, and how hard it would be to replace them in the future if you choose to do so.
3. Does the Property Have the Necessary Utility Connections for Its Future Use?
When you purchase an existing residential property, you do so knowing that there are already enough power connections for a typical household. However, commercial property can vary widely when it comes to power and other utility connections and access. For example, if you are purchasing a large warehouse space with plans to turn it into a factory or auto shop, then you need to determine if the building has enough power lines to operate all of the machinery. Alternatively, if you are buying a stand-alone building to host a laundromat, then you need to ensure it not only has enough power but that it also has adequate water and sewer access.
In addition to answering each of the above questions, you should also work with an experienced commercial real estate agent in your local area. An experienced agent like The Schueler Group will have all of the necessary knowledge and contacts necessary to ensure that you purchase a commercial property that will meet your business needs moving forward.