You might be ready to take the plunge and buy a commercial property in Florida. Maybe your business needs more warehouse space. Or perhaps you are looking for a good investment in a growing market.
No matter what your motivation is, there's a lot to consider before buying that building. It would be wise to have an attorney assist you from beginning to end of the transaction because commercial real estate deals can be trickier than residential ones.
Make sure to consider the following as you proceed with your property purchase:
- Is the property zoned for your business or for the tenants you hope to attract? You can't convert a multifamily residence to retail space, for example, without applying for a zoning variance. Other common zoning designations are office, industrial and mixed use.
- Are there any environmental concerns that will arise with your use of the property?
- Just as you would have an inspector look at a home you intend to purchase, a structural engineer could be helpful with a commercial property. You want to ensure your building is safe for your business, or for tenants, to occupy. You also want to know the condition of the property as well as an estimate of its remaining useful life span.
- What is the risk of this investment? What was the profit and loss realized by the previous owner? What are the real estate taxes? How much are utilities? You don't want to buy a building that has so many financial liabilities that you will lose money.
- Have your financing in place when you sign the contract to buy the building. If you don't, you could lose the ability to buy the property.
- Have a title search performed to guarantee the title of the building legally can be transferred at closing.
Buying a commercial property can have a number of benefits for the owner. Just make sure all of your homework is done before signing the purchase papers at closing time.