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Real Estate Commercial Property – Top 3 Tips For Buying That Commercial Real Estate

Friday, October 16th 2015.

When it comes to buying commercial real estate, the rules are a bit different than when buying residential real estate. Commercial real estate is purchased to be used for the sake of a business. This business needs to make sure the property will fit the needs of the company and that the area is right for their business. The deal can be tough to attain, but well worth it when the business succeeds beyond the dreams of the company.

1. When buying commercial real estate, the buyer must first look at the local clientèle. The customers that will be driven into the business will largely be dependent upon the residents of the area. If the commercial property is in an area that is not thriving and the business is based upon a more affluent crowd, the business may not have the following the business needs to make it successful. A careful look at demographics and median income can tell the buyer a world of information about who will be shopping, or not shopping in their business.

2. After demographics, local area businesses are the next most important factor to weigh when deciding on the purchase of a piece of commercial real estate. If there are 30 coffee shops within a 10 mile radius of the property, opening another coffee shop may not be the most appropriate business decision. A buyer must also look at the local rules and regulations regarding the number of similar businesses allowed within a given area. Many state and local governments impose rules regarding the types of businesses that can be opened within an area.

3. The size and space provided is the third tip for buying commercial real estate. The space, no matter how centrally and perfectly located, will never meet the expectations of the business if it is simply not large enough to hold the business needs. The total overall square footage of the space and the layout of the building will weight heavily on the final decision on whether or not to purchase the commercial real estate. Local regulations regarding certain business types will also need to be researched. Not all area is zoned to accommodate every style of business. The zoning laws can be attained from the local government offices in any given area and will tell the buyer just what type of business the area or property has been zoned to handle.

Commercial real estate is a high dollar purchase and the company needs to take these tips into careful consideration before finalizing the sale. There is nothing worse than finding the perfect spot for that next business venture only to have the space not provide exactly what the business needs. Commercial real estate comes in a wealth of shapes and sizes. From old buildings to new constructions, each offers a different style and shape of space. Carefully looking at all aspects of the space is important to the final decision. If all the arrows point toward a successful piece of commercial real estate, take the plunge and open that new business with hopes of making it big.

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