Buying commercial real estate is not an inexpensive endeavor and should take substantial consideration before making an offer to purchase. There are a number of factors that go into buying a commercial building. Be aware of the major concerns before you commit to anything.
The building you ultimately go with can either enhance your company or serve as an anchor that drags it down. Learn what to know before purchasing a commercial building to avoid any financial or logistical complications.
The State of the HVAC System
The HVAC system determines how efficiently the air flows throughout the complex and how well the system can heat or cool rooms. Inspect the condition of the HVAC to make sure it provides free-flowing air to your employees working inside the building.
An old, inefficient, or broken-down system can lead to stagnant air that leaves pollutants and particulate matter floating around. While this may not seem significant, it can pose a health risk to employees and lower the quality of life on your property.
Water Flow Monitoring Capabilities
Along with the flow of air, consider the flow of water through your building’s pipes. You need flowing water to have a livable building and ensure everyone inside has access to clean drinking water.
Be sure you can accurately measure the flow and pressure of water inside the pipes, ensuring there are no leaks or blockages. If there are no systems in place to do this, flow measurement systems should be installed to guarantee there are no issues with the system; otherwise, it can contaminate the water or significantly increase water usage.
Convenience of Location
One of the most important aspects of purchasing a company building is the location and how convenient it is for your staff member and customers. If you provide services such as plumbing or carpentry, you want to be close enough to your customer base for employees to reach their homes in a timely manner.
Conversely, if you sell goods, your building should be near enough to population centers for easy access. Other factors, including the cost of land, monthly leasing expenses, and the condition of the neighborhood, also play a significant role in your building selection.
Know When To Settle
It’s unlikely that you’ll find a building that is perfect; there are always concessions to be made during the purchasing process. Identify what you can settle for and what you need to have in your building.
A property that needs extensive remodeling will cut into your profits in the short term but can be beneficial for the long term. But a building with a poor location will always have a poor location. Know what your company can handle and what will lead to long-term issues.