There is more than one reason to buy commercial property. The folk at EXIT Real Estate Consultants say that while many think of commercial property as something that business owners consider when they no longer wish to rent premises for their business, it is also something that people consider as a type of investment. But whether you are thinking about commercial property to house your business or want to make some money, there are a few things to bear in mind before you start looking.
What are the Different Types of Commercial Property?
Commercial real estate is typically broken down into these five categories:
- Office space. Buildings designed as office space can house multiple tenants and are usually low-, mid- or high-rise buildings.
- Retail. Retail properties are designed for businesses that sell goods or services to the public or other businesses. These properties are generally located in shopping malls or strips.
- Hospitality. Hospitality buildings include restaurants, hotels, entertainment venues, and short-term rentals.
- Industrial. Industrial properties vary in size but usually house companies that conduct industrial operations, such as warehousing and manufacturing.
- Multifamily. Multifamily properties include assisted living buildings, duplexes, and apartment blocks that house more than one family.
If you are buying for your own business, you will buy the appropriate type of building. However, if you are investing in commercial property, you can choose any of the above.
What to Consider Before You Buy
The type of building you buy is an important consideration but there is more to think about, including the location. Irrespective of whether you are buying for your own business or as an investment, location is important. If for your own business, you will want to make sure that the premises is conveniently located for your staff and for visiting clients. If it is a retail property, it makes sense to ensure it is situated in an area that can take advantage of passing trade.
Centrally located commercial property is always more desirable, but this comes at a price. The more desirable, the higher the price. However, most people would agree that it is worth paying more for commercial property in the best locations.
When looking for property for your business or as an investment, it makes sense to speak with an experienced real estate agent. An agent will provide you with vital information and advice to ensure you get the best deal possible. They will be able to find properties to suit your needs and budget and will ensure that your interests are served when it comes to the contract negotiations.
Consider Your Options
Make sure you are fully aware of what is involved with buying commercial property. If you are seeking finance from a lender for the purchase of the building, you are going to need a hefty down payment. If you have the funds to purchase a building outright, consider whether this is the best way to tie up your money. There may be other ways to invest that will make it easier to access your capital should you need it.
As well as hiring a real estate agent, you should also liaise with an experienced lawyer who will be able to help you make the right decisions for you and your business.
Conclusion
Buying commercial property can be beneficial for a business or those looking for a profitable investment. Nevertheless, before you consider such a transaction, it is important to weigh up the options and ensure you are choosing the right commercial building for your requirements. It makes sense to always seek professional advice before you buy.
