Buying a commercial property is both different and often more challenging than buying your own home. But for both, the first thing you need to do is research and educate yourself.
To do this for commercial real estate, you can listen to industry podcasts, have conversations with other investors, or join a real estate investing group. But getting a return on your investment takes time, and more often than not, more experience and knowledge than you may have on your own.
Why Buy Commercial Real Estate?
There are plenty of reasons to get into commercial real estate. You may be looking to buy a place for your business instead of renting, and you can also rent out additional units in that building. This way, you’ll be able to make more money instead of paying for a mortgage or lease yourself every month.
However, it’s also important to ask the right questions before buying commercial property, such as a good location and how much money you will spend on it. It’s important to do your research and know the most important factors for you before buying one.
Below, Brisky Net Lease has put together a list of what you need to consider before investing in a commercial property:
Five Essential Factors in Buying a Commercial Property
1. Location
You need to find a suitable location that will get enough foot traffic. Think about a place that’s easy to find for your customers and has adequate parking space. Also, make sure that the location is close to public transportation, depending on your need for access. Not only will it make this easier for your clients to visit, but it would also make the commute simpler for your staff.
2. Flexibility
Your business might expand and change over the years, so it’s important to find a place that can be modified to suit your changing needs. Before making a purchase, ensure that you read the property deeds thoroughly to determine if there are any restrictions to changes you can make on the property.
3. Budget
Buying a commercial property is not cheap. When creating a budget, consider any new furniture, ongoing costs, and long-term upkeep. Have some extra funds in the bank to help avoid problems you may encounter. Remember that you’ll provide a large deposit, so always consider how much money you have available.
4. Property Survey
It’s important to have a professional survey done on the commercial property before you make a purchase. It has to be a complete survey, especially if you’re going to invest a considerable amount of money. Keep in mind that having a survey done is a reasonable precaution to check for any problems you might encounter.
5. Low-interest Rates
Keep a close eye on interest rates when buying a commercial property as they constantly fluctuate. They won’t stay constant for a long while, so you might also consider a mortgage. Re-mortgaging your property will help increase capital, which can be cheaper than a business loan. If you decide to invest, you can deduct the tax from interest on commercial mortgages, which can be beneficial.
Client-Centered Commercial Real Estate Investment
Brisky Net Lease is dedicated to delivering the best services to make sure that you meet your goals. Talk with our experts to guide you through the process of commercial real estate investing from start to finish.