Any commercial real estate purchase is a significant investment. Taking the proper steps before signing your contract can ensure that this investment is sound and that you lay the groundwork for future success. What should prospective buyers do before purchasing commercial real estate?
Know the market in which you will be making the purchase.
Especially after recent economic challenges, those purchasing commercial real estate should thoroughly research the market for their property. Consider how local supply and demand have changed and how renters can utilize the property in the future.
Consider the legal aspects of the purchase.
Because every city has unique regulations, it can be crucial for investors to understand those ordinances before purchasing. Consider the relevant building codes, rezoning policies and other rules that may impact your use of the property.
Take care at the due diligence stage of the transaction.
Investing in commercial real estate is a risk, but due diligence can mitigate that risk. Review the condition of the property, noting any questions and concerns that arise during this process. Review the permits and other documentation. Attend site inspections when possible. Taking an active part in due diligence, even if you work with other professionals during this process, will ensure that you have a complete picture of the risk you will assume in the purchase.
Thoroughly review your contract.
Whether you reach an agreement quickly or require more extensive negotiation, your contract is vital. Thoroughly review the contract to ensure that it accurately reflects your agreement with the seller and that it does not contain any errors that might jeopardize your investment.
No matter what stage of the process you are in, an attorney’s guidance can offer important insights. Experienced counsel can help lay the groundwork for a successful business venture.
