If you’re a small business owner, there are a lot of things to think about when it comes to your company’s future. One of the most important is real estate investment. The right property can provide a solid foundation for your business to grow, while the wrong one can be a drag on your finances and day-to-day operations.
That’s why we’ve put together this list of the top ten real estate investment decisions for small business owners. We’ll cover everything from choosing the right location to negotiating the best price, so you can make sure your next real estate investment is a wise one.
- 1 Do You Actually Need Traditional Office Space Or Can You Work Out Of An Apartment
- 2 Pre-sale Or Already Finished Condo
- 3 Lease Or Buy Commercial Space
- 4 Location, Location, Location
- 5 Negotiate The Lease Or Purchase Price
- 6 Get A Good Loan
- 7 Understand The Zoning Regulations
- 8 Hire A Good Lawyer
- 9 Factor Your Current Growth Trajectory Into Your Space Requirements
- 10 Consider The Amenities That Are Important To You
- 11 Conclusion
Do You Actually Need Traditional Office Space Or Can You Work Out Of An Apartment
Commercial office space is very expensive, especially if you are living in a big city. If you don’t actually need a physical office space, you can save a lot of money by working out of your home or renting a small office space instead.
Another option is to invest in an apartment as both a place to work out of and a potentially appreciating business asset. You can write it off, and you can eventually sell it you could make a hefty profit. Whenever you invest in condos, you need to consider whether and where you want to invest in an already finished condo or a pre-sale.
Pre-sale Or Already Finished Condo
If you’re looking at buying a condo as an investment, you need to decide whether you want to buy a pre-sale or an already finished unit. Pre-sales can be a good investment because you can get in on the ground floor and often get a lower price.
However, there is always the risk that the project will be delayed or cancelled, and you may not be able to get your money back. Already finished units are a safer investment, but you will often pay a higher price. You need to weigh the risks and benefits of both options before you decide which one is right for you.
Lease Or Buy Commercial Space
This is probably the most important decision you will make as a small business owner in the real estate world. You need to decide if you want the flexibility of leasing space or the stability of owning your own commercial property.
There are pros and cons to both choices, so you need to sit down and really think about what is best for your business. It’s worth it to reemphasize the importance of thinking carefully about whether you really need office space.
Leasing gives you the flexibility to move if your business outgrows its space or if you need to downsize. It also means that you don’t have to worry about the upkeep and maintenance of the property, which can be a big plus. On the downside, leasing usually costs more in the long run than owning, and you will have less control over your space.
Owning your own commercial property gives you the stability of knowing exactly where your business will be located. It can also be a good investment if you buy wisely. Of course, there are drawbacks to owning as well, such as the responsibilities that come with being a property owner.
You will need to budget for repairs and upkeep, and you may have to deal with problem tenants if you decide to rent out part of your space. The bottom line is that there is no right or wrong answer when it comes to leasing or owning commercial property. It really depends on what is best for your particular business.
Location, Location, Location
They say that location is everything in real estate, and that’s especially true for small businesses. You need to choose a location that is convenient for your customers and clients, and that is in a good area for business. If you’re not sure where to start, talk to a real estate agent or commercial broker who can help you find the right space for your business.
Negotiate The Lease Or Purchase Price
Don’t accept the first offer that you receive on a commercial lease or purchase. It’s important to negotiate the price so that you get the best deal possible. This may take some time and effort, but it will be worth it in the end.
Get A Good Loan
If you’re going to buy commercial property, you will need to get a loan. Shop around and compare interest rates before you decide on a lender. You should also make sure that you understand all of the terms of the loan, such as the repayment schedule and any prepayment penalties.
Understand The Zoning Regulations
Before you buy or lease commercial property, you need to make sure that it is zoned for the type of business that you plan to operate. If it’s not, you may have to go through a lengthy and expensive process to get the property rezoned.
Hire A Good Lawyer
A good lawyer can help you navigate the complex world of commercial real estate. He or she can review your lease or purchase contract, help you with negotiations, and represent you in court if necessary. A good lawyer is an especially important part of buying or renting your first office space.
Factor Your Current Growth Trajectory Into Your Space Requirements
You don’t want to be cramped in your office space, but you also don’t want to overpay for a larger space that you may not need for several years. Try to factor your current and projected growth into your decision about how much space you need.
You can always lease extra storage space or rent out excess office space to other businesses if you need to downsize in the future.
Consider The Amenities That Are Important To You
When you’re looking for commercial office space, you need to consider the amenities that are important to you and your business. Do you need a lot of parking? Are public transportation options important? Do you want a building with a gym or daycare? Make a list of the amenities that are most important to you so that you can narrow down your search.
These are just a few of the important decisions that you need to make when you’re investing in commercial real estate. Be sure to do your research and consult with experts before you make any final decisions.