Buying a commercial property is a considerable investment. There are a large number of things you should consider as you venture out. Buying a commercial property is similar to buying a residential home. However, there are certain factors unique to commercial real estate that you should know about in advance. To find a good commercial property you will need to do your due diligence, look into your finances, and dedicate sufficient time and effort.
The Penticton real estate market has both residential and commercial properties for sale. Gil Szabo is an experienced real estate agent in Penticton. He shared the most important factors that retail property buyers should keep in mind when they look for a property to invest in.
A wise businessperson starts every business venture or investment with an analysis. If you have plans of investing in commercial property for your business or to rent out, it is crucial that you learn some commercial real estate vocabulary and get into grips with the tax policies and implications. Your research will prepare you for the unique complexities of the process of buying and owning commercial property.
Location, Location, and Location!
As with all types of properties, the location is of the utmost importance. Do not just consider the desirability of the area. Try to match the location of the property with the type of business you have. If your business is a retail store, look for a site that is easily accessible for customers.
On the contrary, if you do not deal with your clients at the location then look for a property that will be the most cost effective and suitable for staff. Check if the potential location will have ample parking, is it easily accessible via public transport. Factor in the needs of your business as well; does your company have technical requirements? Then it will be hard to find what you need in out of town or rural locations.
Consider the Growth Potential
All businesses aim for growth and expansion. Therefore, when looking at a commercial property for your business pay attention to its flexibility. Will the property be able to suit your needs as your business inevitably grows? If the property is not flexible enough to accommodate the growth, then you will have to move sooner than you are ready to. Moving can be a costly and disruptive endeavor.
Learn about the building and regulatory requirements of the commercial property you are considering. This information will save you a lot of trouble if you do your research before purchasing. You do not want to be stuck with a property that does not abide by the regulations, which you will have to correct. It is best to get the property inspected before you invest to know if a building has hidden defects that will put you at a disadvantage later.
Rent or Buy
This consideration is heavily contingent on the cash flow of your business. Having a realistic approach is essential when you are making a massive investment like buying a commercial property. Consider your options. If you are a startup, consider renting a commercial space rather than buying one. For businesses that are doing well, investing in commercial property would be a better idea because this investment will make sense for the long-term growth of the business.
Look At Historical Performance
It is a part of the research you must undertake before you decide on the location. It is essential to have knowledge about the historical performance of properties in the area and look into the history of the property you are considering in particular. Find out about any outstanding debts, the seller and their business. You would want to inherit any bad reputation from your predecessor.
Commercial property for your business is an investment, and therefore, the return on this investment should be a consideration. Will you get a good value for the property in five or ten years? Commercial property in an area with potential for growth usually yields a better return.
Choose Your Agent Wisely
When buying a commercial property, you would need an experienced Penticton real estate agent that handles commercial real estate. Look for a reputable agent with great reviews, strong credentials and amazing negotiation skills that will be imperative in locating the right property that suits your business’s needs.