Many individuals are more familiar with the home-buying process than they are with buying commercial real estate. This makes sense for a lot of reasons – namely because many folks purchase their first home before making a commercial real estate purchase and also because it is more common to be leased than to be sold.
While many of the concepts are the same between home buying and commercial purchasing of real estate, there are some significant differences such as commercial property leasing, legal implications and zoning considerations.
As mentioned above, it is much more common for commercial property to be leased than to be sold. Typically, commercial properties are owned by large holding corporations and is only sold if there is a significant problem with the property or the holding corporation. This means that if you want to purchase the commercial property outright, the availability of a good property is going to be very limited, especially if you are tied to a specific geographic location.
It may be better to consider a long-term lease on a commercial property instead.
When purchasing commercial property, you are not given the same consumer protections as you would be as a residential buyer. While states typically have specific legislation that is designed to protect homeowners and renters, they do not have this same type of legislation for commercial property buyers.
When considering a commercial property, it will be imperative that it is zoned correctly for your business. It is best if you can locate a property that is already zoned for your intended business, but if not, you will need to consult with an attorney prior to purchasing to be sure that the property can be re-zoned for your business. Obviously, this is of little concern to home buyers because they generally plan to use the home for the purpose for which it was intended and zoned for when built – a residence.
When purchasing a commercial property, take these differences into account. It may take a while to find the perfect location for your business, but it is doable. If you feel overwhelmed by the process, or just do not have enough time to devote to the search itself, consider hiring Quinn & Associates. The experts at Quinn & Associates can assist in buying, and leasing, commercial real estate.