Make sure you ask the right questions
Category Property
When you are looking to purchase a commercial property, it is important to be equipped with the right information and ask the right questions. Fundation Property and the assigned broker is your guide in this process, but it is crucial that you are proactive in gathering all the relevant information that you need to make an informed decision. Here are some of the questions you should be asking your broker when buying a commercial property.
What is the current market landscape in the area?
Knowing the current market situation in the area where you are looking to purchase a property can help you make informed decisions. Ask your broker about the current supply and demand, as well as any trends or external factors that may be affecting the area, demand or value.
What is the history of the property?
Knowing the history of the property you are interested in can give you an idea of its past performance, which can help you assess its future potential. Ask your broker about the property's past ownership, any major renovations, and any issues that have arisen in the past, rental history, security in the area and how long previous tenants have occupied the property.
What are the rental rates in the area?
Rental rates play a crucial role in determining the value of a property. Ask your broker about the average rental rates in the area and how they have been trending. You can also ask about the current occupancy rates, which can give you a better understanding of the current demand.
What is the zoning of the property?
Zoning regulations can have a major impact on the use and value of a property. Ask your broker about the zoning of the property you are interested in, including any restrictions or limitations that may apply. This is an important aspect as it has a large effect on insurance policy and risks attached.
What are the building regulations and rates in the area?
Building regulations and rates vary from area to area and can have a significant impact on the cost of owning a property. Ask your broker about the building regulations and specifically the rates. Also, just ensure there are no outstanding council requirements that you will need to meet if you purchase the property.
What is included in the sale?
It is important to know what is included in the sale of a commercial property. Ask your broker about any equipment, fixtures, or furniture that are included in the sale and what, if any, personal property will be excluded.
What are the estimated yield on this property?
Yield plays major a role when purchasing a commercial property. The Yield / ROI will ensure that when you enter a purchase agreement you are insuring that this is a solid long term investment.
Purchasing a commercial property can be a complex and time-consuming process, but with the right information and guidance, it can also be a great investment. Ensure your broker provides answers that gives you a level of comfort, if he / she doesn't, find another broker or walk away from the property. Equipped with the right answers, you can make sure that you have all the information you need to make an informed decision.
Author: David Asbury