What attracted you to a particular commercial property for sale? Some of those very details are the same ones you should consider maintaining and/or upgrading over time to ensure the highest value of your real estate. Why? It goes beyond aesthetics. There are legal factors to consider in securing your investment, too.
Here are some actions to take to protect its value and make sure it is worthwhile commercial property for sale in the future:
- Make sure the property is zoned for its intended use. If it is not, you will need to determine the likelihood of being able to get a variance or permit, as well as if you can afford it.
- If you are buying somewhat older real estate in what will be an up-and-coming hotspot for growth, consider the architectural style of newer buildings nearby. You may not want to proceed with a full renovation right away. However, you can make some complementary cosmetic changes – signage and your front entrance to start off. As business grows, you can make more updates. If you decide to sell it later, it will be an attractive commercial property for sale.
- How is the property constructed (brick, metal, glass, etc.)? How susceptible is it to fire and theft? How much does the daily operations of the business pose a risk for fire hazard to its occupants– say a manufacturing plant vs. a gym. Consider installing alarm, security and sprinkler systems. Also consider possibly changing out the more fire-hazardous aspects of the building materials as budget allows.
- Consider establishing your business as a Limited Liability Corporation, or LLC. It’s become popular among real estate investors to use limited liability companies (LLCs) to protect their personal assets. In other partnerships, your property might not be protected against a lawsuit, bankruptcy or foreclosure.
Our team at the Menlo Group believes these above tips will help you when you buy that commercial property for sale. If you have any questions about the commercial real estate buying or selling processes, contact us. We can help you find and create value in a commercial property transaction.