5 Issues to Avoid When Buying a Commercial Property
Are you considering buying a commercial property? There are different ways to buy a commercial property, such as through commercial property auctions. However, there are also many different issues you want to avoid when buying property.
When you buy commercial property, different issues can arise. These can not only do damage to your business reputation and wallet, but they can also destroy chances of business success. Commercial property can make or break your business, so read on to learn these five issues to avoid.
1. No Plan
One of the biggest mistakes you can make when buying commercial property is not having a plan. You can easily get swept up in a commercial realtor’s sales pitch or the commercial property value without a plan. However, you want to ensure the property will be suitable for your business long-term.
You and investors will be putting a lot of time and money on the line, so take the time to budget and plan accordingly. Is buying commercial property realistic for you right now?
2. Not Understanding the Market
The commercial property market continues to evolve. For example, nearly three percent of the US workforce currently works remotely at least half the time, and more companies than ever are introducing flexible working policies.
Without a trustworthy commercial realtor, you can quickly run into many issues if you do not understand the market. You could misjudge commercial property value or buy a commercial property that does not suit your business needs. For example, commercial property value and trends are evolving, such as more businesses deciding to lease instead of buy property.
3. Making The Wrong Choice
One of the biggest issues when buying a commercial property is making the wrong choice. You are often tied into that choice, so you need to make sure it matches your financial goals and ability to take risks. Take the time to consider long-term financial goals, so you do not make a choice that is too much of a risk for your business.
4. Failing To Do A Compliance Review
It is essential to do a compliance review before you complete a purchase. Commercial property realtors should also guide you with this. You want to make sure the building adheres to local, state, and federal regulations. You should also be aware of property developments in the area.
5. Not Considering Renting
A survey found around 70 percent of companies are considering leasing offices instead of buying commercial property. After all, it offers less risk, more flexibility, and the ability to adapt to your business’s changing needs. Why limit yourself to a space that you may quickly outgrow or want to change?
Avoid Buying A Commercial Property
Some businesses consider buying a commercial property for capital growth, income, or another strategic purpose. However, there are many issues you have to be aware of and learn how to avoid. It is worth considering renting a property instead, due to the many benefits this option offers.
Are you interested in learning more about renting a commercial property in the Tampa Bay area? HSW Associates is here to help. Speak to one of our experienced commercial property realtors today to get started.< Back to Blog