Things to consider when buying commercial real estate

The Melbourne, Florida, area has a lot of great buildings and property where new ones can be built. The sheer volume of commercial real estate closings has many people looking for advice about how to navigate the commercial real estate market successfully. To do so, it is important to review some key considerations.

One of the most basic things to consider is the type of property that you are looking for. That starts with clearly identifying how you will use the property. For example, you may want to establish your own business there, or you might want to rent out the property to other people’s businesses. You also might want to do a hybrid of those two things, by having your business on part of the property while renting out the rest of it to other businesses.

Based on the needs of your business and the expected needs of other businesses that you plan to rent to, you can determine the facets that the property you get will need to have. For example, it may need to be close to a business district or a recreational area, depending on the type of businesses that you expect to have on the property.

You’ll also want to consider the cost of the property you are looking at and compare it to other properties so you can do a cost benefit analysis. Each property that you look at will have its own set of benefits and deficits, and cost will be one of those. You will also want to decide if you want to buy or lease the property, looking closely at the terms available for each option, and making a decision based on your ability to make a down payment and successfully secure financing. When you sit down with your attorney to go over the details, you can put together a good plan that will maximize your opportunity for success.

Source: 42Floors, “7 Steps to Owning Your Own Commercial Real Estate,” accessed Aug. 24, 2017