If you own a small business, you may have considered buying commercial property to house an expanding employee roster or to open a second location. Bank of America notes that this is a growing practice, with small businesses present in more than 30% to 50% of commercial space throughout the country.
Buying commercial property can boost your business’ value and increase its assets; however, there are a few mistakes to avoid as you decide which properties best suit your needs.
While a property might seem affordable and appealing, you may want to consider how its location could affect your business. As you inspect the building, consider a few important factors:
- Location in contrast to your customer base
- Access to shipping needs
- Limited parking for employees and customers
Maintaining a list of factors related to the location as you browse commercial properties may assist you in making the best choice possible.
Poor expansion opportunities
Your business cannot profit well unless you have the opportunity to expand it, so consider the future. For example, does a property have empty lots that you might utilize down the road? Are there any opportunities to build upon the existing lot? If you plan to expand further in a few years’ time, these are questions to keep in mind before you make a purchase.
Working with a group of knowledgeable individuals, such as mortgage brokers and commercial real estate agents, may help you make a choice that helps you feel confident about the property you choose. Avoid rushing a purchase and ensure that you have any property inspected thoroughly before you finalize the deal.