What to Review Before Buying Commercial Property
What to check before buying commercial property, including access, zoning, property condition, costs, and professional reviews.
HelloNation has published an article featuring Commercial Real Estate Expert Mark Graham of Holland Real Estate Group, Inc. on what buyers should review before purchasing commercial property. The article covers access, layout, utilities, zoning, condition, and professional reviews. It advises buyers to assess whether a building supports current operations and potential future needs. Purchase price is only one part of the ownership cost.
Assess Daily Operations
Location involves more than an address. Employees, customers, suppliers, and delivery vehicles may need different forms of access, while parking, loading areas, traffic patterns, and turning space can affect daily operations.
Buyers should also assess whether office areas, storage, production space, customer areas, ceiling heights, entrances, and loading access fit the intended business. Electrical capacity, water, sewer, gas, internet service, heating, and cooling may require closer review, particularly for specialized operations.
Review Use And Condition
Zoning and permitted use can determine whether a property suits a planned business. A building’s prior use does not guarantee approval for another use, so buyers should confirm requirements with local officials.
Roofs, foundations, electrical systems, plumbing, HVAC equipment, exteriors, and parking areas may need professional evaluation. Engineers and environmental professionals may also be needed for structural, mechanical, soil, groundwater, storage tank, or hazardous-material concerns.
Plan For Ownership Costs
Financing requirements may affect appraisals, insurance, inspections, and environmental reviews. Legal documents, including title matters, easements, restrictions, leases, surveys, and shared access arrangements, can also affect ownership and use.
What to Check Before Buying a Commercial Property also advises buyers to review property taxes, insurance, utilities, maintenance, repairs, association charges, and tenant obligations before closing.
