When you are looking to purchase a suitable commercial property to start your business, there are a number of factors you need to consider. This is because investing in such an asset can be as risky as investing your money in the financial markets if you are not careful. You need to be prudent and carry out a thorough research of the types of real estate available in the market that fall under this category and their future income-earning potential. Selim Zherka, a prominent real estate developer, consultant and investor from United States with over 30 years of experience in this field, says this can turn out to be a mammoth task for most property buyers. He advises you to hire a proficient expert to help in this endeavor so that you get the property you want at the most reasonable price.
This real estate professional further explains that you need to take into the consideration the following factors when it comes to buying a suitable commercial property:
The location of the property you intend to buy is a critical factor that can influence your decision. You need to use past trends of commercial establishments coming up and flourishing in the area as an indicator. Moreover, you need to ensure the place is accessible to your suppliers and customers in the marketplace via road or water transport.
You need to create a budget on how much you are willing to spend on such a commercial property before making up your mind. This will make it easier for you to select the right real estate asset among the available options in the market. In case you cannot purchase it outright, you need to consider amount of money you need to deposit as a down payment and opt for a suitable mortgage for the rest.
You need to know for what purpose you are going to use the commercial property before buying it. This will give an idea of the general condition of the asset at that present moment and the amount you need to spend on renovating it. Such a step can go a long way in increasing resale value and its future income-earning potential in the form of rentals.
The commercial property that interests you should be free from all legal disputes regarding its ownership and tenancy. While you could use this issue to re-negotiate the sale price of the asset with the party occupying the property, you may have to burn your pocket in paying for litigation expenses.
Infrastructure development of a place can play a vital role in determining the value of commercial properties in its vicinity. The available of basic amenities like water, electricity, connectivity by rail and drainage can enhance its sale price.
You need to consider the above factors when you enter into negotiations for the purchase of a particular commercial property. Selim Zherka says you may have to visit it a number of times and identify issues that the occupier needs to take care of before concluding the final deal. However, this can ensure you get the commercial real estate asset of your choice at the right price.