Under the right circumstances, purchasing commercial real estate can be a wise investment for a small business. However, it’s also a complex undertaking that requires a methodical approach, careful research, and meticulous planning. Here are some tips to help you locate and utilize the right properties for your business.
Benefits of Buying Commercial Real Estate
When you lease property, you are subject to rent increases, but banks generally offer fixed rate loans when you purchase commercial real estate so that you can anticipate your monthly expenses. You can claim tax deductions on mortgage interest, property taxes, and other related items. Owning your own property also gives you complete freedom to adapt it to the needs of your brand and business. You can change the color, renovate, or customize it as you see fit.
Selecting the Right Properties
Included in the term commercial real estate are office buildings, apartment complexes, shopping centers, hotels, and other forms of business property. When considering what form of property would be the right investment for you, have a close look at the benefits of the location in terms of customer proximity, access to various transportation routes, and ample parking spaces. Check the zoning laws to be sure that your type of business is allowed and you are legally free to make inside and outside changes to the existing structures. Carefully inspect the physical condition of the property to be sure it contains no environmental hazards such as lead paint or asbestos.
Profiting From Commercial Real Estate
Commercial real estate typically has great investment potential, steadily increasing in value over time. You can rent out whatever portions of the property your business is not using, and you can also offer tenants extra services such as parking, maintenance, and trash removal. Additionally, You can sell advertising space for billboards and other signs on your property.
For more advice on buying commercial real estate, get in touch with IRC Commercial Lending.