Buying commercial real estate is a different process than purchasing a home. There are several types of commercial properties to choose from, but it’s a matter of picking one that offers the best returns in the long run. Bear in mind the essential steps below when investing in one.
How to Buy Commercial Real Estate
1. Identify Investment Goals
Make it a point to narrow down your goals for purchasing commercial real estate—is it to add a steady stream of income or use the asset for business expansion or operations? Have a solid reason for investing, as this will serve as your guide for future decisions.
2. Do a Cost-Benefit Analysis
Once you’ve established your goals, run the numbers to see if buying commercial real estate will be more profitable in the long run for your business. Evaluate the risks, costs, and benefits, then weigh if these are worth the investment.
3. Find the Right Property
Choose a location that benefits everyone, especially your clients. Have a list of factors to consider, such as accessibility, zoning limitations, building codes, allowable uses, and parking. Include in your search the possibility of leasing out the extra space or converting it for future expansion.
4. Secure Financing
Buying commercial real estate in cash will strain your short-term cashflow and impact operations. Instead, look for financing options to know how much you can shell out without hurting your business.
5. Work with Professionals
Before closing the deal, it pays to work with a team of experts. Have a commercial real estate agent, lawyer, accountant, and mortgage broker on board to ensure that there are no costly missteps or oversights during and after the transaction.
When buying commercial real estate, let an experienced agent from Galvin Realty Group Inc. help you every step of the way. As a trusted commercial real estate firm in Rochester, NY, they’ve provided outstanding services to their clients, such as property management and real estate appraisals, around Monroe County. Call (585) 546-1290 to set an appointment or view their full list of services online.