Whether you’re expanding your business or getting a new one off the ground, commercial real estate is a big investment, with more pitfalls than you’ll likely encounter when buying or selling a house. Before making an offer or putting a property on the market, it’s important to develop an understanding of what you’re getting yourself into. Below are the answers to some common questions you might have about buying or selling commercial real estate.

Your Commercial Real Estate FAQs Answered

How Is Commercial Real Estate Different From Buying a House?

When purchasing a residential property, you usually buy it outright, while most commercial buildings are generally leased from a long-term owner. However, even if you do buy commercial property, you might have additional zoning considerations residential buyers don’t have to worry about. Most importantly, the law assumes commercial clients are more sophisticated than private homeowners, so you won’t have the same consumer protections as you would when buying a house.

What Are Some Potential Problems?

In addition to the normal issues of clear titles and liens, you might also find yourself on the hook for repairs you weren’t aware of when you bought the place. If you’re planning to lease, you might be locked into a long-term contract with unfavorable terms, so it’s best to have a skilled professional guide you through the process.

What Lease Provisions Should I Look For?

If you’re looking for a business location, pay careful attention to what costs you’ll be responsible for. Some commercial landlords will pick up the maintenance and repair bills, while you’re responsible for other expenses. How these are divided up can make or break your business.

Do I Need a Commercial Real Estate Agent?

In a word, yes. An agent will have the experience and knowledge of the market to help find the perfect space for you or list your property and will negotiate on your behalf to ensure you get the best deal possible. They’ll also help you avoid common mistakes that could cost a lot of money in the long run.

Winmar Corporation has been serving Lexington, KY’s business community since 1951, specializing in prime office space in some of the city’s most beautiful historic buildings. This local management company operates the Tate and Bakhaus Buildings, each with a range of amenities and office environments sure to impress your clients and employees. Visit their website now to learn more about these premier office buildings, or call (859) 254-5755 to discuss your needs with an agent today.