If you're going to be opening your own business, it's time to start thinking about commercial real estate. You might have been thinking about renting a commercial building, which may be less expensive to begin with. However, when you consider things like rent increases, and the frustration that can come from dealing with a landlord, purchasing commercial property for your business, may be more to your advantage in the long run. If you've decided to forgo the landlord/tenant route, and purchase your own commercial property, here are four steps that will help you avoid problems during the process.
Choose the Right Location for Your Business
When it comes to the success of your business, location is key. The last thing you want is for your business to fail because you located it in the wrong part of town. Now that you're looking for commercial property, make sure you choose a location that will afford you the greatest opportunity for success. For instance, if you're going to be opening a restaurant, choose a location that provides access to a main thoroughfare. You'll also want a location that provides adequate parking.
Plan for Expansion
Your business may be small now, but that doesn't mean it will stay that way. In fact, you're probably hoping that your business will continue to grow. With future growth in mind, you should choose a commercial property that will allow for expansion, and modification. When determining the ability to expand, be sure to look at the space between neighboring buildings. If the buildings are too close, you'll have no space to add-on to your building.
Consider the Bottom Line
Now that you're going to be running a business, and purchasing commercial property, it's important that you consider the bottom line. Knowing the bottom line will allow you to choose a building that will best fit with your current budget. Some of the things you should consider include the cost of doing business in your ideal location, including taxes, business licenses and permits, and commercial insurance costs.
Obtaining a loan for commercial property can be stressful, and time-consuming. To help you avoid headaches, and delays that could interfere with the purchase of your ideal property, take the time to obtain pre-approval for a commercial loan. Once you have pre-approval, you'll know exactly how much commercial building you can actually afford, which will help narrow your search.
Now that you're in the market for a commercial building, use the tips provided here to eliminate some of the stress. For questions regarding your business property, be sure to speak to a commercial property broker near you.