Four Ways to Find the Perfect Commercial Property For Your Business
Commercial property is essential for every business. It provides a space in which to work and helps to legitimize your company. Commercial property comes in many forms, such as offices, warehouses, and retail. The type of commercial property you choose will depend on the nature of your business. But finding the right commercial property can be difficult. Here are five ways to make the process easier and find the perfect property for your business.
Buy or Rent?
You first need to consider whether to buy or rent the property. Buying a property has various advantages, such as the potential for appreciation, the ability to write off mortgage interest, and the possibility of using the property as collateral. But it also has disadvantages.
First off, buying a property requires a large upfront investment. You’ll also be responsible for ongoing maintenance and repairs. And if your business doesn’t do well, you could be stuck with a property that’s difficult to sell.
On the other hand, renting has lower upfront costs and gives you more flexibility. You can also negotiate a shorter lease if you’re unsure how long you’ll need the property. But you won’t have the same potential for appreciation, and you may have to pay more in the long run if your business is successful. However, just know that the median cost of rental offices is around $216 per square foot. This will help you stay on budget.
The type of commercial property you choose will depend on your business needs and financial situation. If you think a property is a good asset for your business in the future, then go for it. However, if that isn’t the case, renting might be better.
Choosing the Right Location
The location of your commercial property is just as important as the property itself. You want to choose a convenient location for your employees and customers. It should also be in a safe area with good schools and amenities nearby. The location will also affect the price of the property. Properties in prime locations will be more expensive than those in less desirable areas. But it’s important to remember that the location is just one factor when choosing a commercial property.
You also need to consider the property’s condition, the size, and the amenities included. If you’re looking for office space, for example, you’ll want to ensure that it has enough room for your employees and all the necessary utilities.
Moreover, you should keep track of where your employees live. The average American employee commutes for about 27 minutes. Do your best to find the right location to reduce your employee’s commute time.
Choosing the right location requires you to list down all of these things. Do a checklist for every location you visit, and choose the one that covers all your company’s needs.
Inspect the Property
Once you’ve found a few potential properties, it’s time to inspect them. This is where an in-depth drone aerial inspection comes in handy. You can use drones to get a detailed view of the property, including hard-to-reach areas.
This will help you identify any problems with the property before you make an offer. Hiring a professional inspector to check for hidden issues is also a good idea. Ensure they check the property for mold, pests, and structural damage.
Property inspection usually costs around $500. But it’s a necessary expense if you want to avoid any expensive surprises down the road.
Get the Right Financing
Financing is another important factor to consider when choosing a commercial property. You’ll need to have enough money for the down payment, closing costs, and repairs or renovations. The type of loan you choose will also affect your monthly payments.
There are various types of loans available for commercial properties. You can get a conventional loan, an SBA loan, or a commercial hard money loan. Each has its benefits and drawbacks. You’ll need to compare interest rates, terms, and eligibility requirements to choose the right one for your business.
You should also consider getting pre-approved for a loan before you start looking for a property. This will give you a better idea of how much you can afford.
Once you’ve found the perfect commercial property for your business, it’s important to negotiate the best possible deal. This includes the purchase price, interest rate, loan terms, and other concessions from the seller.
Finding the perfect commercial property for your business takes time and effort. But it’s worth it to find a property that meets your needs and budget. Use these tips to find the perfect commercial property for your business.