If you have a new business or are looking to move into the brick-and-mortar realm, you’ll need to know a bit about commercial real estate before purchasing your storefront, restaurant space, or land for farming. Here’s what you need to know about purchasing property for your business.
Looking to the Future Is Important
Your plans for the building or land you are purchasing are vital to consider before you sign any papers. Are you planning on buying property to rent out to other businesses or will you be using the space for your own company? While you may not be able to see into the future, it is important to plan for growth and possible scenarios when you are investing in real estate. Some business owners start out running their own businesses and later see the merit in purchasing real estate to rent out to other companies. As an example, Stefan Soloviev has grown his family’s agriculture-based businesses into a more diverse holding company with interests in many different industries. While this may be an extreme example, you should consider how you want to grow your business in the future, even if that just means renting part of your space out to another company.
Buying Has Its Perks
When you are initially starting out, purchasing your workspace may not always be feasible and that is understandable. If you are able to purchase property, at the beginning or later down the line, there are many perks to owning the land your company sits on. You’ll have more freedom to do what you wish with the property and can rest assured that your rent won’t increase or your lease terminated. There are also potential positive tax implications to owning versus renting, so be sure to talk to an accountant or financial advisor to maximize these benefits. Additionally, you could potentially become a landlord yourself in the future if you own your property, which can be another way to increase your income streams and expand your business.
Asking Experts Is Wise
It may seem obvious, but make sure to talk to the experts in this field, including accountants, lawyers, and real estate agents. The world of commercial real estate is varied and expansive, so having a solid team of professionals on your side can make the process more streamlined. Unless you have extensive knowledge in this area, enlisting help can keep headaches and legal woes at bay.
Purchasing property to be used commercially is an exciting jumping point for you as a business owner, so use this knowledge to help guide you on your journey.