 | Robert Cobb is Managing Broker/Owner of CENTURY 21 Cobb Realty in Pittsburg, KS. He is a life-long resident of Pittsburg and a PSU graduate with a BS in Business Administration. He has been in the real estate field for 23 years. He is currently a KAR Director and the President of the Pittsburg Board of Realtors. |
Real Estate
2011-12-27 13:16:25
What to consider when buying commercial real estate
Q: I am considering taking the plunge and buying commercial property for my business. What are the main considerations? Is there a strategy I should follow?
A: There’s no one size fits all strategy for buying commercial real estate, but there are several considerations that can make the process run smoothly and assure that you are getting what you need.
First, consider why you should buy. There is risk in any business venture, and that is one of the main reasons many business owners hesitate before buying commercial property. However, the advantages to owning can be significant, such as greater control over the cost of overhead and asset appreciation. Another advantage, if you ever need a serious cash influx to revive a lagging business, you have a real asset that can save you in a pinch and still have the ability to keep the business running.
Second, work with professionals. Buying commercial property is not something you want to go into lightly or uninformed. Ask around a little and you’ll find there are many people that tried to go it alone and were somehow victimized in the process. A real estate agent and real estate attorney will prove invaluable.
Next, invest time in researching the location. You might be considering the current “hot” location, but remember neighborhoods go through trends as well. Think about long-term practicalities like growth potential, parking, access and space.
Lastly, make sure there are remedies in place to minimize risk in the buying process. Structure inspections as contingencies that must be satisfied before the sale can proceed. Make sure your investigations include a physical inspection of the property, confirming the zoning, review of environmental hazards and soil reports if you plan to add on. If the property is not developed, you’ll need at least 30 days for environmental assessments.
While buying commercial property can be a very involved process, any effort you put in is well rewarded. Good luck on your exciting new venture!
