If you are a new business seeking to purchase new office space, or you are looking to expand your real estate portfolio, there are a few key criteria you should consider when it comes to commercial properties. Sometimes, these elements can go unnoticed. Taking the proper precautions when determining your new investment is very important, so continue reading to discover the 5 factors your business should consider prior to purchasing commercial property.
Location is absolutely essential when investing into a new piece of property. Whether it’s making your business in an easily accessible area with plenty of parking, or making sure there’s transportation for employees or customers nearby, it’s crucial to take this into consideration. Location can make or break the consumer’s decision to visit your business or not.
It’s important to understand if the property you are looking into has done well in the past. Unless the building is new, take the time to research the performance of the property based on other properties in the area. Some things that you can compare and contrast are the capital growth, yield, and overall traffic to the location of the property.
The last thing you want to happen is to have any surprise costs after investing into your property. To avoid additional costs, you can check with the property to see when their last maintenance was done on things such as landscape, plumbing, and electrical. You can also visit the property, take note on what visibly may need repairs, and factor this into the overall research prior to making the commitment.
Prior to investing, you can discover the generated amount of money your property may make. Commercial real estate can yield based on the market value, annual income, or running costs. The yield itself can determine your gross amount and your net amount. This can give investors a relatively educated estimate on how much money they expect to see in return.
If you plan on leasing your property, it’s important to make sure that your lease term is long enough to be able to recover your investment profits. This can be something so easily overseen. Make sure you take the precaution to discover the lease term before making a final decision.
Investing in commercial real estate? Want to learn more about the next steps you can take? Contact our experts at Quinn & Associates today by calling (508) 588-5600 or emailing us at firstname.lastname@example.org.