Buying a commercial property is a logical step for almost every business looking to scale up. It can provide a stable income, and you can use it as a springboard for further growth.
However, purchasing commercial real estate can be a complicated and stressful process, especially if you are a first-time buyer. Many moving parts are involved, from finding the right property to negotiating with a seller and getting financing.
With so much at stake, taking your time with the decision-making process is important. To ensure that your commercial property investment is good, take the time needed to consider the factors outlined below.
You want to be sure that your commercial building is in a prime location that will help attract customers. Consider these factors while deciding on the location of your commercial property:
- Proximity to landmarks and transportation - you want your business building near a major landmark or train station. This will help draw attention and make it easier for people to find you.
- Proximity to amenities - Shops near schools or hospitals are often more profitable. This is because they can attract customers looking for an education or healthcare service.
- Proximity to the target market - Consider whether your proposed location would be convenient for your target demographic (for example, if you're selling toys for children). It should also be easy for them to get there on foot or by public transportation.
- Proximity to the suppliers - If you have a restaurant, ensure your restaurant's kitchen is close enough to the food suppliers to deliver their goods with no major issues or delays. At least ensure they have direct access to avoid going through traffic-heavy areas on their way home after delivering food supplies.
The size will dictate the price you pay for your commercial property.
In addition to accommodating people who come in and out of your business regularly, having adequate space also allows for design flexibility so that changes can be accommodated easily and affordably if changes need to be made later.
Try looking at properties with extra rooms that could be used as storage or office space. This will allow you some flexibility when things change.
Size also directly affects how many people can be served at once. Both in terms of wait times and overall capacity during busy periods (like lunchtime).
It is always advisable to buy a commercial property bigger than your business requires right now so that when your business grows, there will be no need to move the premises because of inadequate space.
In retail properties, this step is crucial because even if you start with a small business today, it may grow into something remarkable.
Consider purchase, rehabilitation, and stabilization costs before fixing the commercial real estate investment budget. Commercial real estate bridge loans can finance these costs. A bridge loan is a short-term financing solution used to bridge the gap between a borrower's current and long-term financing.
This loan is usually used for real estate projects that take more than one year to complete. The main advantage of lending is that it allows investors to get involved in various commercial real estate investments without waiting for years before seeing a return on their money.
Visit our website to learn more about commercial real estate bridge loans.
So these are the top 3 factors to consider when choosing the right commercial real estate financing option. Now you have all the information you need to decide for your business and save you time and money.
Please get in touch with us today if you have questions or queries regarding real estate financing. We're happy to help.