3 Things To Check When Buying Commercial Real Estate
Buying commercial real estate can often be an extremely tricky prospect, mostly due to the many extra considerations that you have to keep in mind when compared to buying a piece of residential real estate. Thankfully, there are a few things that you can check when buying commercial real estate that can help you make sure that you get the best property for you and your needs, such as the three listed below.
Rental Data From Previous Years
One of the most important things that you should check when buying commercial real estate is rental data from previous years, particularly if you are planning on using the commercial real estate property as a rental property. This is vital because you do not want to end up buying an office building or shopping space with the intent of charging a set price for any tenants only to discover that you are pricing your property way above all of the other properties in the area or much higher than was charged by the previous owner of your property. The reason for this is that you could end up in a situation where no one is willing to rent from you or you could end up having to lower the rent price so much that you are not making as large of a profit as you planned on.
Crime Rates For The Area
Another thing to check when buying a piece of commercial real estate is the crime rate for the particular area that you are looking to buy in. The reason for this is that the crime rate in an area is going to directly influence just how much you will be able to charge potential tenants to do business there or how easy it will be to attract customers to your place of business if you are using the commercial property yourself. For example, if there is an extremely high crime rate in an area, customers will be much less likely to want to come around the property and potential tenants will not be willing to situate their business within your commercial property unless you dramatically lower how much you are willing to charge per month for them to lease or rent a spot in that piece of property.
Necessary Upgrades Or Repairs
Finally, you will want to determine what necessary upgrades or repairs the property is going to need before making an offer on it, mostly due to the fact that you do not want to have to spend a massive amount of money buying a piece of commercial real estate only to find out that in the next few weeks or months it is going to need extensive repairs or remodeling. As a result, it is very important to make sure that you have a contractor do a walk-through of the property with you in order to have him or her point out any causes for concern before you purchase the property. In addition, this is very useful as you will be able to use the contractor's information to either negotiate a lower price when buying the property to offset the cost of the repairs or to force the seller to make the repairs or upgrades to the property on their own before you take possession of the property.
Contact a commercial real estate broker or agent today in order to discuss what things you should check on when buying a piece of commercial real estate and to discuss what you are looking for in a piece of commercial real estate. You will want to check the rental data from previous years, crime rates for the area, and what necessary upgrades or repairs the property will need before committing to buying a piece of commercial real estate.
