A New Home for a New Year

Posted on: 15 March 2023

Buying commercial real estate can be a significant investment in your business, and it has a series of unique considerations you will have to balance. For someone new to buying commercial real estate, it is critical to review these key factors.

Review The Zoning Rules For The Property

The zoning rules of a commercial property can significantly impact how the property can be used. Understanding these rules is critical to avoiding legal and financial issues with the property. For instance, if you plan to open a retail store on a property zoned for industrial use, you may encounter problems with local authorities. This could lead to costly legal battles, loss of business income, and even forced closure. In addition to usage restrictions, you should also check for any restrictions on the types of renovations or modifications you can make to the property. Luckily, a commercial real estate agent can assist you with learning about the potential restrictions that will apply to a property.

Calculate The Costs For Updating The Building To Suit Your Business

When investing in a commercial property, it is necessary to calculate the costs of updating and retrofitting the building to suit your business needs. Some examples of this might include the cost of renovating the interior, adding necessary features like parking spaces, and upgrading the building's infrastructure.

You should also review the estimated ongoing maintenance, repairs, and upgrade costs. These costs can add up over time and significantly impact your business's bottom line. Budgeting for these costs helps you avoid unexpected expenses that could derail your business's success.

Always Review The Legal Occupancy Limit For The Building

Exceeding the legal occupancy limit for a commercial property can have serious consequences. In extreme cases, violating the occupancy limits could lead to the forced closure of the business. Reviewing the legal occupancy limit for the building before investing in the property is essential. Ensure the property's capacity aligns with your business needs and future growth. Otherwise, your business may quickly outgrow this space, which could lead to you needing to schedule a disruptive move.

Use A Feasibility Study To Assess If The Area Can Support Your Business

Before purchasing commercial real estate, you should conduct a feasibility study to see if the location can sustain your business. This study should consider factors such as the local economy, competition, and customer demographics. While these factors will not guarantee that your business succeeds, they can help give it the best chance possible.

Contact a company like Lighthouse Real Estate to learn more.