Whether you’re looking for a commercial property to house your own business, or you’re hoping to find a multi-unit building that you can rent out to several businesses, there are a few factors you might want to keep in mind. The following will explore some helpful tips for people shopping for commercial real estate properties.
Curbside Appeal
Just like when buying a residential property, the appearance of your real estate from the road is going to impact its value. People tend to stick to their first impression unless they have an extremely emotional experience later that changes their minds. Because of this, it’s vital that property make a good impression from the outset; look for places that appear clean and well-kept from the outside. Being aesthetically pleasing from the outside will help you attract tenants if you’re looking to rent the commercial property out, or clients if you’re looking to set up your own business in the location.
Work With A Professional
When you’re looking to purchase a piece of commercial real estate, you’re looking for a solid investment when it comes to the property, but you’re also looking for a good location for a business (or several businesses) to operate within. A real estate agent who knows the areas you’re looking in can be a huge help with this process, and they’re usually more privy to any behind-the-scenes conversations that have been taking place. They also have a strong sense of how many businesses have tried to thrive in a given location and how many of them have failed; hiring a commercial real estate broker can help ensure this pertinent information is shared with you. If you’re hoping to keep the property rented to businesses, you need those businesses to be doing well enough to pay rent. If you’re thinking about opening your own business on the premises, you want to be in a location that has enough passersby of the right income bracket to keep your business thriving.
Research The Water And Air Quality
When looking for any kind of property, it’s important to research the air and water quality in the areas you’re searching in. Poor air quality is responsible for 1 in 5 deaths on earth, according to a recent Harvard study, and several research papers have been released linking cancer to water quality. These studies are relatively new, but health has become a major driving force within the economy. As more people become aware of the terror that is contaminating air and water (a process that has already begun), it’s possible property values will be deeply affected as people flock away from the most polluted areas.
Zoning And Permissions
The government is heavily involved in regulating what businesses can work in what locations. It’s important to note that commercial zoning isn’t the end of the line when it comes to commercial real estate. Different businesses need to meet different standards; opening a theater, for instance, requires fire exits given a large number of people present; restaurants have health and safety standards that need to be met by the facilities within. Some businesses use machinery that must be locked up a certain way at the end of the night, changing up which type of doors are needed. If you have a business in mind, it’s a good idea to compare all the requirements with the space you’re considering. Likewise, you want to look into any city by-laws that restrict alterations made to the face or interior of buildings before making your final purchase.
Don’t assume it will be easy to make changes to a given property. Always look into what hoops the local government requires you to jump through before presenting an offer.
Be Wary Of Fads
If you feel like you need to jump on a property ASAP, or you’re going to miss out on a fantastic opportunity, the chances are that the opportunity is a short-term one. If it’s not going to be around six months from now when you find another commercial property to rent, it’s not a long enough term opportunity to make real estate decisions. Real estate investments are almost always long-term investments; if a particular business that the property is primed for isn’t long-term, the investment might not be a wise one.
The above information should help you while you shop for a commercial real estate property. It’s a good idea to enter into the search with a list of your needs, a list of your wants, and a specific amount of money that you’re not willing to spend. While hunting, you can compare properties to these three elements, making sure that you don’t compromise a need for want and that you don’t get charmed by crown molding and ten-foot ceilings into spending more than you can comfortably spend.
Read Also: Post-Pandemic Real Estate Markets: What Are The Emerging Trends?
