Most businesses need an office space. No matter how you started, now might be the time to look for a place to house your expansion.
Learning about purchasing a commercial property can be essential in growing your entrepreneurial dream. Making a sound investment requires due diligence, often involving slightly different considerations than those necessary in residential real estate transactions.
Three considerations for buying an office
As with residential properties, location is a prime consideration for purchasing commercial real estate. You must be accessible to potential customers and meet zoning requirements.
Additionally, you should ask yourself whether ample parking is available. Look into the other businesses in the area. And research local market trends to protect your interests.
Other commercial real estate considerations include:
- Determine which type of loan is best for you and get pre-approval on a reasonably priced property before you make an offer.
- As with any real property, you might envision making changes or upgrades to your proposed office. However, you may not recognize potential problems with your plans or – worse yet – understand how much time and money it will take to complete them.
- Your real estate attorney can help you mitigate risk by reviewing the documents and legal allowances for the property in question.
There’s no doubt you want the best for your business. However, you must be sure the idea of a large-scale financial commitment doesn’t cloud your judgment.
Owning your own building is an asset that often appreciates in value, whereas you have no ownership interest in a property you lease. You might be able to lease out unused space in a building you own.
Depending on your business structure, you might have angel investors concerned about a return, board members interested in the company’s long-term growth, or shareholders counting on gains. Performing your due diligence and seeking wise counsel can help you make choices in the best interest of your business as well as those involved.