More and more companies are moving to a remote, distributed workforce. And while that’s great for the industries that support this type of work arrangement, it’s not possible for the majority of businesses in any given city.
Owning and maintaining a business property is still very important for many companies. And with a lot of businesses selling off their property and going remote, it means there’s more commercial inventory on the market.
But buying a commercial property is a major investment. It’s costly and takes a lot of time. Most companies stay in their purchased buildings for many years, as it’s too much work to be moving around too often.
So how can you ensure that you purchase a commercial property that will work well for your company? Read on below for the most helpful tips to buy a commercial property this year.
Buy for the Future
Whether you are looking to start a business in the near future, or have been in business for the last 10 years, it’s important to buy a building that supports your future company.
If you plan to expand and grow, you need to buy a building today that will facilitate that growth tomorrow. Buying a building for an existing or new business should become part of your overall growth strategy for the next five to 10 years.
Buy something bigger than you need. And if you plan to implement new departments, or bring offshore manufacturing in-house, you’ll need to find a building that supports these future business goals.
Think Like an Investor
Buying a building to house your business is only part of the equation. You also need to consider the value of the building itself. Eventually, you’ll want to sell. Even if you don’t sell, the value of your building can be used as collateral for future financing.
Make sure to buy a building in an area that will likely increase in value, not decrease. The appreciation you will likely experience can offset the initial higher price tag of a better location.
And if things go south, you always want to know you can sell and exit an investment. The better the location, the easier this will be.
Blank Slate or Full Remodeled
Some businesses are looking for bare buildings they can remodel and outfit to their liking. Others would prefer to buy a fully refurbished property, ready to move into.
Consider your budget, your timeline, and your unique needs when considering the best condition for your investment.
Buying a Commercial Property for the First Time
Most businesses start out by renting. Once they’ve established a track record and expect continued growth, buying a building makes more sense financially and logistically.
But buying a is a much more complicated process than renting. If you’re new to buying commercial real estate, check out this article to understand the process and how to get started.
Experience the Benefits of Buying Right
With a growing business, one of the best investments you can make is buying a commercial property. If done right, these will appreciate in value alongside your business.
Having equity on your balance sheet can make the process of qualifying for financing, taking on investors, or selling your business that much easier. But the key is buying the right property.
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