Like purchasing a house, buying a commercial property can be a complicated process. There are many elements to handle before you can set up shop in your new space, from finding the perfect location to negotiating a deal and passing the building inspection. If you’re preparing to purchase a new commercial property for the first time, don’t forget these four important steps. 

Getting Ready to Buy a Commercial Property 

1. Consider Your Business Goals 

Consider your business goals. Think about why you’re investing in a new commercial property and what you need. Think ahead and consider what your business may look like in 5 or 10 years. Consider your risk tolerance as well. If you’re not sure what kind of commercial property to buy, keep in mind that retail and restaurant spaces tend to have higher turnover than office rentals, while residential properties are more consistently in demand than business units. 

2. Get Finances in Order

Figure out how much you can afford to pay for the property in total and how much you can put down now. If you require financing, speak with a lender about rates and what you can afford. The property you’re purchasing may require a down payment of 15%, 25%, or even 50%. The more you put down, the less interest you will pay. 

3. Make an Offer

Once you’ve found a property you’re interested in buying, you’ll need to draft a letter of intent (LOI) with your lawyer. The LOI should not be a binding contract but a statement of your desire to buy the property and under what conditions. The offer should include a building inspection contingency, which means your willingness to buy the property depends upon a passed inspection. If the property doesn’t meet inspection standards, the owner will have to make changes or negotiate a price change to compensate. 

4. Get a Building Inspection

Before buying any property, you must have a building inspection performed. This typically includes an American Land Title Association (ALTA) survey, which provides information regarding elements such as boundary lines, the location of the buildings, easements, and utilities. The inspector should also thoroughly examine every aspect of the property, including the building’s exterior and interior, from the roof to the foundation. The inspection also includes plumbing, electric, and HVAC systems. In some cases, you can opt to have part of the property inspected instead of the entire space, although a more thorough inspection is usually preferable.

If you’re a business owner looking to invest in a new commercial property, turn to Fusco Engineering & Land Surveying for your building inspection and construction surveying needs. This locally owned and operated company in Middletown, NY, has served the greater Hudson area since 1983. Call them at (845) 344­-5863 or visit their website to learn more about their services.