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, your focus shifts to how well the property meets your business’s needs — and whether the investment makes financial sense over the long term.
A good deal on a commercial property doesn’t just mean a low price. It means making a smart purchase that supports your business goals and positions you for long-term success. So, how do you set yourself up to make the right decision?
We’re glad you asked.
Think Like a Professional
Commercial real estate is a completely different ball game than residential real estate. Residential properties are typically valued based on comparable sales in the area. However, commercial properties are usually evaluated based on their income potential — essentially, how much money the property could make.
For example, a storefront in a high-traffic retail district is going to be worth significantly more than a similar-sized space in a less frequented area, even if the physical structures are comparable. The reason? The retail district has built-in foot traffic, visibility, and a higher likelihood of consistent business revenue. That potential for future income directly impacts the property’s value.
If you’re purchasing a space to operate your business or lease to tenants, you’ll want to run projections on cash flow, operating costs, and potential return on investment. This is one of the areas where working with a knowledgeable attorney can be especially valuable—ensuring the numbers make sense and the terms of the purchase protect your interests.
Have a Plan in Mind
Before you begin searching for the right space, define your goals. Are you looking for an owner-occupied property for your existing business? Are you investing in a multi-family building or strip mall for rental income? Is this a short-term flip or a long-term hold?
For instance, if you’re opening a restaurant, look for spaces that already have the necessary infrastructure — such as plumbing, grease traps, and ventilation systems — to support a commercial kitchen. Retrofitting a space can get expensive fast, and permitting can add unexpected delays.
On the other hand, if you’re purchasing a large residential property, you’ll want to evaluate how many units are in the building, the average rent in the area, and your expected maintenance costs. It’s also critical to understand local zoning laws and building codes — especially if you’re planning to renovate, repurpose, or expand the property in the future.
Having a clear vision and a financial plan can prevent costly mistakes.
Know the Neighborhood
In commercial real estate, location is everything. The right address can make or break your business. That’s why doing your homework in the neighborhood is essential.
Start by visiting the area at different times of the day. Is it busy? Is it safe? Is there ample parking or public transportation access? Consider how easy it will be for your customers, clients, or tenants to find and access the property.
Be wary of locations that have high turnover rates. We’ve all seen them — that corner unit that seems to change hands every year, from a hair salon to a pet supply store to a short-lived coffee shop. Sometimes, a “great deal” is a red flag. Look into why previous businesses may have struggled in that space. Was it poor visibility, limited access, or simply the wrong business model for the area?
Also, evaluate the surrounding businesses. Is your concept a good fit for the neighborhood? Does the community need what you’re offering, or is the market already saturated? Connecting with local business associations, chambers of commerce, or city councils can help you better understand what’s happening in the area. It may even open doors for partnerships or support.
Build the Right Team
Even the savviest entrepreneur needs a team of experts. Commercial transactions are complex and can involve unique legal and financial considerations. Having experienced professionals by your side is critical for negotiating lease terms and navigating due diligence, reviewing zoning laws, and ensuring a clean title.
At Frank B. Pallotta’s office in Woodstock, Georgia, we’ve helped countless clients protect their investments and close with confidence. Whether you’re buying your first commercial property or expanding your portfolio, we’re here to help make the process smooth, informed, and legally sound.
Give us a call — especially if you’re opening a pizza place near our office. We’ll be first in line on opening day.