Purchasing commercial property can bring changes to your business, introducing new challenges and new opportunities. However, investment in commercial real estate can be a complex process, and it is essential to keep track of the details every step of the way. By asking the right questions, you can make your real estate purchases a sound investment in your business’s future.
Is buying commercial real estate the right fit for your business?
Like every decision for your business, you must decide whether purchasing real estate will give your business a stronger foundation for success. Consider these questions:
- What are your business’s goals?
- Would a physical location or a new location support those goals?
- Is this investment going to benefit your business in the long run?
Answering these questions can help you determine whether now is the right time to make an investment in real estate.
Is your business prepared to make a purchase?
After determining whether purchasing real estate could benefit your business, you need to take a hard look at your business’s finances and the commercial real estate market in your area. Some questions to consider include:
- What is your company’s budget?
- Is now the right time to invest in commercial real estate? If you wait, could you be in a better position in the future to make the investment?
- How much demand is there for commercial properties in the area? Do the existing properties sell quickly?
- How do the final prices of recent sales compare to the property owner’s initial asking price?
- What additional costs—including renovation, fees, repairs and maintenance—will the purchase involve?
It is important to be detail-oriented when considering buying property and to account for the wide variety of fees involved. For example, you may find that purchasing property offers tax benefits that leasing your current location may not.
What do you need to know while making a purchase?
When you find a property that suits your needs and have negotiated the price, the path toward closing this purchase can bring new complications. You may need to resolve concerns like:
- Issues found during the inspection, including details that the property owner should have disclosed
- Problems with financing
- Title defects, including unreleased liens and missing property information
Many business owners have questions when purchasing commercial real estate, and it can be essential to have the guidance of an experienced attorney throughout the entire purchase process. An attorney can answer your questions, ensure that you have considered all relevant details during the purchase and help you make a sound investment that benefits you and your business for years to come.