The property you saw in the MLS listing commercial real estate publication has you seriously thinking about buying your own building. But, when buying commercial real estate, you need to understand many factors before making your purchase.
So Many Choices
MLS listing commercial real estate can include retail, office, industrial, medical, apartment and mixed-use buildings, as well as warehouses. Each come with their own unique set of features, responsibilities and challenges. While you may be excited about owning and investing in your own building, being fully informed about the characteristics of each type is key before making the leap.
Next, ask yourself if really have the time to commit to owning the building you saw in the MLS listing commercial real estate. If you own a commercial retail or medical building with 10 tenants, or even half that, you’re responsible for all leases, CAM adjustments, public safety issues and how you’re building is perceived by the public in general. Of course, you can always hire a property management firm to assist you, but it is wise to determine what this commitment means.
Unlike residential property, any MLS listing commercial real estate will require more capital up front. Keep in mind the condition of the property you’re interested in. A new(er) or cared-for building will not likely need thousands of dollars in repairs within the year you purchase it.
Limited Work Hours
Depending on the type of building your invest in, your working hours will apply to when that building is open to the public. Even in the case of emergency, calls for break-ins or fire alarms, you can still sleep through the night. An alarm monitoring service is notified to alert the proper authorities.
Upon determining you have the monetary resources to own your own building, you can look forward to an annual return between 6 and 12% of the purchase price depending on the location.
Without a doubt, there are definite advantages to owning the building you saw in the MLS listing commercial real estate. So, if you’re prepared to invest, this can be a very prosperous and exciting time. Our team at the Menlo Group can help you find a property that suits your needs and ensure a seamless buying process. Contact us with any questions you have. We look forward to working with you.