Looking to buy a commercial property for your small business? You’re in great company. In the US, small businesses occupy 30% to 50% of all commercial space. That means there are plenty of options for you to find the perfect space for your business. Commercial property investors should always consult with local real estate brokers. If you are a new business owner in Brevard County, FL and you’re interested in buying commercial property, here are a few things to keep in mind.
When starting a new business, the location will play a vital factor in your customer’s experience. To attract customers, make sure there is ample parking nearby. Depending on your industry you will want to consider if the area you are considering is near an established shopping district. Are other businesses moving away from the area? Paying attention to real estate market trends will ensure that your business will continue to thrive for years to come.
Commercial properties such as office, industrial, and retail spaces have different classifications that indicate risk. For example, office spaces are either Class A, B, or C, in order of least risky to most risky. These classifications consider factors such as how old the property is, what repairs it may need, resale value, and property management. You will want to take this into consideration as you look at your overall budget.
Before you purchase your property, have it inspected to uncover any hidden issues like asbestos, mold, or damages. Newer buildings are usually more expensive but will likely require fewer repairs.
How will you pay for your new property? Commercial real estate buyers have various options for loans including a bridge loan, hard money loan, SBA 504 loan, or a conventional mortgage. Each of these options come with their own qualifications. Talk to a real estate expert to figure out which is the best option for you. A local broker may know about specific grants available for new small business owners.
Business owners should rely on a team of experts to help the process go smoothly and catch any problems early on. Experts will guide you with everything from securing financing to renovations. Consider hiring a contractor, real estate attorney, mortgage broker, CPA, tax attorney, and commercial broker when buying a commercial property. You may also want to explore hiring a property manager.
If you are leasing rather than buying your commercial property, it is important to understand all the terms of your commercial lease. Commercial leases are often 3-5 years, but these terms can be negotiated before signing.
Pay careful attention to the use clause and exclusive clause in your lease which tell you how you can and can’t use your property.
A commercial lease is a contract that must include certain elements in order to be valid, so look over your lease with your landlord thoroughly before signing.
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