So you’re thinking about buying a commercial property. Maybe you want to open a store for your small business, or you’re looking for new office space for your growing business. Whatever the reason, there are a lot of things to consider before you take the plunge and purchase a commercial property.
Before you sign on the dotted line, there are a few questions you should ask to make sure the property is right for your business. Here are some of the most important questions you should ask when buying a commercial property.
56 Questions you should ask your real estate agent before you buy:
- What’s the ideal location for my business?
- How much foot traffic does this location get?
- What are the demographics of the people who live and work near this location?
- Is this a high-crime area?
- What does the local competition look like?
- How much can I realistically afford to pay for a commercial property?
- What condition is the property in?
- Will I need to make repairs or renovations?
- How much will those cost?
- Does the property come with any existing fixtures or furniture that I can use?
- How big is the property? Is it too big or too small for my needs?
- How many restrooms does the property have?
- Does the property have enough parking spaces for my customers or employees?
- What are the dimensions of the parking spaces?
- Is there street parking available?
- Is there easy access to public transportation from this location?
- What are the terms of the lease agreement?
- How long is the lease, and can I renew it when it expires?
- Have other businesses been successful in this location before? Why or why not?
- What are the current and future zoning regulations?
- Would a change in zoning be possible?
- What’s included in the sale?
- How long has the property been on the market?
- Why is the owner selling?
- What’s the cost per square foot?
- How much space do I need?
- Can the property be expanded or renovated?
- What financing options do I have?
- What are the estimated operating costs?
- What types of leasing options are available?
- What are the local market conditions?
- What’s the competition like in the area?
- What is my timeline for moving in?
- What’s the annual property tax bill?
- Does the property come with any existing tenants? If so, what are their lease terms?
- Are there any environmental issues associated with the property?
- What’s the average income of residents in the area?
- What’s the attitude of residents toward businesses in general and this type of business in particular?
- What local ordinances or regulations might affect my business if I were to purchase this property?
- How many floors does the property have?
- Does the property have an elevator?
- What’s the monthly association fee?
- Are there any restrictions on the use of the property?
- How old is the building?
- What type of heating and cooling system does the building have?
- When was the last time the property was inspected by a professional (e.g., electrician, plumber)?
- Does the property come with a warranty?
- Is the property handicapped accessible?
- What’s the condition of the roof?
- Does the property have a sprinkler system?
- Is the property located in a flood zone?
- What are the insurance costs?
- How much do utilities cost?
- Does the property have a security system?
- Does the property have an alarm system?
- Does the property have a fire suppression system?
Frequently Asked Questions
What are the benefits of buying commercial property?
The benefits of buying commercial property are many and include increased financial security, more control over your business operations, and access to tax incentives and other financial benefits.
When you buy commercial property, you acquire a tangible asset that you can use to grow your business and generate additional revenue streams. Plus, owning commercial property gives you the flexibility to adapt it to your changing needs, allowing you to expand or contract as your business grows or shrinks.
Overall, investing in commercial property can be a great way for entrepreneurs and business owners to boost their bottom line and increase their chances of long-term success.
What are the risks of commercial real estate investment?
Investing in commercial real estate can be a risky endeavor because the commercial real estate market is often volatile and subject to rapid change. There are several risks that investors should be aware of when investing in this type of real estate.
These risks include fluctuations in rental rates and vacancy rates, potential damage to the property, and competition from other commercial properties in the area.
In addition, there may be legal issues that can affect an investor’s return on investment, such as zoning restrictions or environmental regulations. It’s important to carefully weigh all potential risks before deciding to invest in commercial real estate.
Conclusion
Buying a commercial property is an important decision for any business owner! Make sure you do your due diligence by asking both the seller and the property itself a series of questions to get a better understanding of what you’re getting into. With this information, you can make an informed decision about whether or not it’s the right commercial property for your business.
