Investing in Your First Commercial Property? 4 Things You Should Look For
Posted on: 10 November 2015
You're finally in the market to buy your first piece of commercial property. You've already been approved for financing. Now it's just a matter of finding the perfect property. Before you let excitement get the best of you, take the time to pick the property that's best suited for your needs. Here are four things you should look for when purchasing commercial property.
It's All about Location
You've found the perfect building. Unfortunately, once you look at it, you find out it's located in a seedier part of town. That's when you realize why the price was right. Before you start looking for property, map out the city where you plan to make your purchase. Outline the areas in which you absolutely will not purchase. Provide your realtor with a copy of your map. This information will help your realtor choose properties that are within your desired locations. It will also ensure that you and your realtor don't waste valuable time looking at properties that won't interest you.
Look at the Physical Condition
No matter how good the price is, it's not going to benefit you if the needed repairs will cost more than your budget will allow. Before you choose a property, have it inspected by someone you trust. Once you know what's wrong with the building, you'll know if it's a worthwhile investment for you.
Take Zoning into Consideration
Cities have specific zoning requirements that you'll need to follow if you plan on doing business. Pay close attention to zoning when choosing a commercial property. This will save you time and money, especially if you purchase a property only to find out that you can't use it for the intended purposes.
To save time and frustration, stop by the city zoning office before you start your property search. They'll be able to provide you with a complete list of their zoning regulations. They'll also be able to let you know if a building you've already looked at is zoned for your particular business venture.
Access and Parking
Take a look at the building. Is the parking lot easily accessible from the street? Are there enough parking stalls for the business you plan on generating? If you answered no to either of those questions, you may want to look at other properties. This is particularly true if the building you're considering is landlocked, meaning there is no room on either side for expansion.
Now that you're getting ready to invest in your first commercial property, take the time to choose the right one. Look for commercial property for sale in your chosen area and keep the tips provided here in mind to help you avoid costly mistakes.
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