Finding a great commercial property isn’t quite the same as finding your dream home. Instead of looking for the right number of bedrooms or a good school district, you need to consider how the property works for your business — and if you’ll end up spending more money than you make.
So how do you get the best deal on a commercial property? We’re glad you asked…
Think like a professional.
Commercial real estate is a different ball game. Unlike residential real estate, commercial properties are typically valued based on potential income, or how much money your property could make in the future. For example, a prominent space in an established retail district is going to be valued higher than an off-the-beaten path location. While the financial potential of a property is definitely among the things you should consider in residential real estate, it’s the thing to focus on in a commercial transaction.
Have a plan in mind.
Are you looking for a space to house your business, or are you in the market for a multi-family rental property? How much build out are you willing to invest in? If you’re opening a new restaurant, you probably want to look for spaces that already have the foundations (plumbing, gas lines, etc) for a commercial kitchen. If you’re interested in owning and managing a large residential property, you’ll want to consider how many units are in the building and the average rent in the neighborhood. Knowing the business side of what you’re looking for is just as important as knowing what design features you want the building to have.
Know the neighborhood.
Commercial properties can change hands quickly. Every neighborhood has one of those spots — one year it’s a hair salon, then a pet store, then a coffee shop. Finding a motivated seller can help you score a great deal, but be careful you’re not buying into a “cursed” location. Does the space have enough parking? Is it easy for customers to find? Additionally, you’ll want to do your research on the surrounding businesses — does the area really need another pizza place? It also helps to visit neighborhood business associations or city councils, so you can start to form relationships with the people who will one day become your customers.
Most importantly, make sure you have a team of experts on your side! We’re always ready to help you close on the perfect property, so give us a call (especially if you’re going to open a pizza place near our office).