Commercial properties are a huge investment, so it’s wise to take your time and make the best choices possible when you buy one. Whether this is your first commercial purchase or you want to avoid mistakes others make, it’s a good idea to consider some of these ideas.

Is The Building Geared to Your Needs

Whether this is going to be a multi-residence building or an office building, you need to make sure the current property is close to fulfilling your needs. For spaces that require focus and quiet, look for buildings that have items like sound-absorbing panels already built in.

 

If instead, you need a large building with many small offices or you want a space with a call center layout, it’s a good idea to keep that in mind when you’re hunting for a building.

 

Some details can, of course, be built on or renovated later, so don’t be afraid to find a balance between the two. Keep realistic about what you can handle updating later, and be sure to stick to that.

The Current Market You’re In

What’s the current market for commercial real estate where you are? Working with a professional can help give you a clearer image of this, but generally, you want to be careful not to buy if the market is too hot or if your business currently has an unclear future.

 

Going into 2023, many signs are pointing towards commercial real estate being more valuable than residential real estate, with prices finally balancing and more options staying available for longer.

 

If you’re unsure about what the market looks like in your area, it’s vital that you don’t make any quick decisions and that you talk to professionals before making a huge investment.

Whether The Building Has Enough Room

When your business moves into this building, will it have enough room? The best rule of thumb is to buy bigger than you need so there’s room to grow. If you’re looking at a building and it already feels like it’ll be a tight fit, this might not be the best option for you.

 

When buying a building, you should have a ten-year plan in mind that will give you a goal to build towards. Your structure should be able to accommodate wherever your company will be by the end of that five-year mark, so when you hit that ten-year mark, you’ll be able to sell and go bigger.

Demographics and Local Population

The local demographic is important for more than just the customers that will be in the area. You also need to consider the population of workers and possible employees that will be there.

 

What’s the average age and education level of someone who works for your company? If you’re trying to get someone with multiple degrees, you’ll want to stay near an area that has a lot of great colleges, or you’ll want to pay enough that employees would be willing to relocate to work for your business.

The Condition of the HVAC System

Your building’s HVAC system will have a huge impact on your business’s bottom line. Keep an eye out for building details like tunnel ventilation dampers, how old the system is, and how many filters are in place.

 

Updating the HVAC system of an older building will cost thousands, so if your budget is already tight, avoid buying a building that needs this work upfront.

Whether There Are Use-Specific Rooms

It’s a good idea to know whether this building already has a mail room or if you’re going to have to put in a new construction mailbox. Use-specific could mean anything depending on the industry you’re in, but it’s a good idea to remember there are some that every enterprise needs.

 

Your employees will need spaces like break rooms, restrooms, and possibly an area to store their items if this is a factory or warehouse, so keeping these spaces in mind is important.

The Wear and Tear on the Exterior

What’s the exterior of the prospective building look like? Is it attractive with a new exterior cladding system, or does it need a lot of work? If you’re expecting customers and clients to come to this building, you’ll want it to look as welcoming and charming as possible. Even if your employees are the only people that will be showing up to the company, you want to give them a building they’ll look forward to arriving at every day.

 

This isn’t as important as other items on this list, but it can boost employee and client morale.

Investing in Commercial Property is a Big Deal

Commercial properties are large investments that tie huge amounts of money into something that’s not quite a guarantee. If you want to make sure your property succeeds, take the time to consider each of these points before you sign.

 

Sam Willis is a freelance writer that loves sharing his knowledge and expertise on commercial real estate. He lives in Atlanta, Georgia where he enjoys spending time with his wife and researching real estate trends in his free time. Sam’s work as a freelance writer can be found on Building Product Advisor, a new construction industry resource launching in Fall 2022.