Deciding to buy commercial property instead of renting is a big moment for any business owner—it establishes a more permanent home base for their business. However, if you go into the process with the same expectations you’d have when buying a residential property, you could make some critical business errors. Get yourself in the business mindset before you purchase new property for your storefront and educate yourself on what to know before purchasing a commercial property.
Are You Buying the Space for Yourself or Renting It Out?
Before you buy, you must know what you’d like to use the space for. Is it a new location for your business? Is it an office complex with room for multiple other businesses? Whatever your reasons for buying the property, keep them in mind when you’re shopping around. You may even buy a property with residential space on top that you can rent out for some extra money to go toward building upkeep.
How Much Work Does the Building Need?
Just like homes, commercial properties can come with hidden expenses in the form of renovations. Always get your property inspected before finalizing the price. If the value of the property is worth the investment due to the property’s location and your target market, the extra work of renovations might be worth it. Even commercial foundation issues aren’t the end of the world if you catch them early on—foundation repair solutions such as helical piers can minimize your business’s downtime with their fast installation and long-lasting engineering.
Keep Your Location in Mind
Whether you’re buying your first location or a second, it’s important to consider not only the condition of the building but also where the building is located. What to know before purchasing a commercial property includes assessing your building’s accessibility—can customers easily enter and exit the parking lot? Will they need to walk a short distance to the entrance?
Don’t forget to consider competition alongside the location. Are you setting up shop directly across from your largest competitor? Carefully determine if the competition around your location will take business away from you or bring in business. A keen business sense is essential when you’re choosing your location—if you’re new to owning a business, consider asking for help from a business owner in your community.