What will you do with the property?
Some investors in commercial property don’t really care what type of commercial property it is nor where its located as long as it will generate a profit. More commonly, though, most commercial property investors what a particular type of commercial property, a particular area for the operation of a business or by leasing the property to someone else who will operate a business at the location.
Unless you are the first type of investor (who doesn’t care what type or where the property is), you will probable have some idea of why you want to buy commercial property. Let’s use as an example, a restaurant.
You want to buy a restaurant or open one because you are a chef and are ready to start a new enterprise. You’ve worked in restaurants and are confident you could make a successful business. You might want to open some other type of business, but the restaurant example is a good one and the same principles apply to most all types of businesses.
If you were going to open a garden center, you would probably be looking for different type of building and a different area with lots of bare land. Thus, the use of the property is a determining factor in the area and location you will be investigating.
How to Select an Appropriate Existing Building to Buy.
It seems obvious, but you should choose a building that suits your intended use. This is a mistake that is commonly made. As, often is the case, there is no building that is exactly suitable, unless you are buying an existing restaurant and, even then, the existing building may have inherent defects for use as a restaurant, even though it is being used as a restaurant.
You can be somewhat confident that the zoning for your new restaurant is okay if there is already a restaurant on the site, but you still need to check as the existing restaurant may have only a “conditional use permit,” which is a special permit issued only for that restaurant owner. While you may be able to succeed to the permit, you’ll need to verify this.
How much space will you need? You’ll need to have space for your kitchen, of course, your dining or take-out area, seating, office space, cash register area, servers area, cloak room, locker room for employees, bathrooms and many other areas depending upon the type of restaurant you intend to establish. Don’t forget the Americans with Disabilities Act (ADA). With only a few exceptions, your new business will have to be wheelchair accessible, not only for your customers, but also for your employees. You’ll Need a Plan!