5 Factors to Consider When Purchasing a Commercial Property
There are several details to consider when looking for suitable commercial real estate to purchase. We all know the old adage “location, location, location” is true for commercial properties just as much as it is for residential. But there are many other issues to consider as well:
- Location, Location, Location. This is still the No. 1 priority. You need to have good visibility, close to customers, workers, and vendors or suppliers. Businesses need to be convenient to customers to the extent that they have a location where the customer can find with easy accessibility.
- Physical condition. After identifying the general location, research the history of the property. Consider how the building was previously was used, the wear-and-tear, whether there are any environmental issues or potential liability issues, such as asbestos or lead paint. Verify the building was properly permitted and walk it with either a license general contractor or building inspector.
- Allowable uses. If your business is an accounting firm, you likely need commercial office space. If you are a manufacturer, you need an industrial space. Either way, you need to make sure the zoning allows you to do what you need to do on the property.
- Adequacy of access and parking. You need to make sure your customers can park and take into consideration whether access is compliant with laws such as the Americans With Disabilities Act.
- Opportunity for expansion or leasing. Entrepreneurs often have a rosy outlook about growth and so the potential to expand is a consideration as is the flipside – if you don’t grow as much as planned, can you lease out extra space?
Each of these five factors contribute to the overall satisfaction with your space and success of your purchase. A Commercial Broker can help you identify the right space, and navigate the purchasing process.
For more information on purchasing or to view available properties visit COBE Real Estate
Brad Broyles is a real estate professional with over 11 years of experience in real estate investments, management, development, leasing and sales.
Since joining COBE Real Estate in March 2013, Brad has participated and closed over $50 million of commercial real estate transactions. Prior to joining COBE Real Estate, he spent 4 years as a Vice President of Commercial Banking which he was responsible for managing and selling a $30 million commercial portfolio. Brad also specialized in business start-ups, SBA lending, cash flow capital and special asset management. His unique business and real estate background allows him to be the best representative to any business owners who are wanting to expand or relocate their company.
Brad has a Masters of Real Estate Development from Arizona State University and a Bachelors degree in Accounting and Finance from the University of Phoenix. He is a member of the Arizona Small Business Association and is active with the Mesa Chamber of Commerce.