Are you in the process of buying commercial real estate? Or maybe you have a business plan ready to go and have just started looking for a space.
No matter what level you are at, investing in commercial properties is a significant step to take. But with a few helpful points, it doesn’t have to be a scary investment. This type of purchase could take you to the next level with your business. But without thoroughly planning for the decision, it could do the complete opposite – crumble your business idea.
So whether you are looking at the New York City commercial real estate market or opening up a business north of the border, here are a few tips to help you be successful when buying commercial real estate.
Ask Lots of Questions
Start by asking yourself a lot of the tough questions. The point of asking questions is to get a better understanding of the whole picture – what you are looking for, what fits your business plan and are you ready for this?
The more questions you can ask, the more information you have to work with. This also goes with any sales associates, accountants and anyone else that is involved in the transaction process. The more you know, the better off you will be.
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Research the Market
The last thing your business needs is to have a location that no one goes to. Whether you are a retail store or an office space for clients to visit, you want to be easy to access for the public. Pay attention to the trends in the market. See where other local entrepreneurs are buying and where they are staying clear from.
Your research should also include things like taxes, environmental concerns and the demographics of the potential area. If the type of workers you need don’t match the area you are looking it, you may have a hard time getting skilled laborers on board.
Organize Your Finances
Since purchasing commercial real estate is not an easy task, you’ll want to be as organized as possible. More importantly, you want to have your finances in order before you even begin.
Your financial situation will determine what type of property you can afford. If you end up going after a property way out of your price range, there’s a good chance the bank will decline you for financing.
Speaking with an accountant is a good idea to help give you a snapshot of what you can afford. They will also be able to help you develop a budget that includes any and all hidden costs that come with this type of purchase. Your account can also find tax benefits for you that could be significant to your financial state.
Visit Each Property
Take the time to visit each property you are considering. If there are a few you really like, go more than once. While you are there, envision the space to what you want. You should be able to have a bit of a picture as to what the property will look like with your business plan. If not, it may be time to move on to the next listing.