Commercial property has been a hot investment for business owners and developers for decades. Many developers have made a very comfortable living prospecting for commercial property and buying into land that would soon skyrocket in value. Entrepreneurs who own growing businesses often find themselves in a situation where buying property is much more financially beneficial than renting or leasing, so they become commercial property owners.
For people who think that buying residential property is complicated, it should be interesting to note that buying commercial property offers many more challenges. In order to navigate the complicated world of business real estate, it is essential to know who to talk to and who to have on your side.
Put Your Team Together
In order to keep your finances straight and make sure you get the property that is right for your business, you are going to need a team of experts to help you. Wikihow recommends assembling a team that includes:
- An accountant
- An experienced commercial real estate attorney
- An experienced commercial real estate broker
- A reliable mortgage banker
According to DeGuire Properties, “Your real estate broker should belong to several commercial real estate networks that will allow you access to as many property options as possible. It is not to your advantage to get involved with a broker who can only show you the few properties that their firm is representing. You want a broker who works with other brokers and utilizes Internet listings to give you the maximum amount of options to choose from.”
Get An Accountant That Knows The Commercial Real Estate Business
Forbes Magazine recommends getting a commercial real estate accountant who is not afraid to get deep into the numbers and give you information that can help you to make a good buying decision.
A good accountant can take past revenue numbers and use those to help protect possible revenues for your business. Even if your business is different than the business that was previously in the building, factors such as location and prominence of the building in the business community will create numbers that are critical to your company’s success.
Talk To Business Owners In Each Neighborhood
One of the aspects of buying commercial real estate that most buyers neglect is finding out what kind of neighborhood a building is located in. There can be tons of reports generated about the building itself, but those reports can be rendered useless if the neighborhood is not conducive to business.
Before investing in a piece of commercial real estate, you should spend some time walking around the neighborhood and talking to other business people in the area. How long have then been conducting business in the neighborhood? Is it a safe neighborhood? Does the neighborhood get a lot of foot traffic? The value of a building could be a significant bargain if the neighborhood is conducive to your business.
Talk To Customers
As you walk around a neighborhood where you are considering putting your business, see if you can talk to any of the consumers that are walking the neighborhood to get their input. Would they welcome a business like yours? Does the neighborhood need a business like yours? If the consumers are interested in seeing you open a business in a neighborhood, then your chances of success dramatically increase.
Buying commercial property is a long process that requires plenty of research and due diligence. Once you have done all of your homework, then you are going to be better prepared to make a smart investment in your company’s future.
