Most companies start out by leasing commercial property for their business operations. But, if profits go up and the company is starting to look like a success, some businesses may begin to think about purchasing commercial real estate instead. It’s the old “rent vs. buy” situation, and many companies often come to the conclusion that it is simply a better investment, or more cost effective, to own the property where they conduct business.
So, what do Florida businesses need to consider when it comes to buying commercial property? As our readers can probably imagine, there are quite a few things, but, unsurprisingly, the most important is probably the location of the property in question.
Choosing the right location is critical for the continued success of a business. Some companies that are happy with the location they lease may be afforded the opportunity to purchase the property outright, but that may be a difficult proposition if the landlord thinks that getting a new tenant would not be a problem. So, oftentimes a move is required when purchasing commercial property.
When choosing a location, most companies will want to ensure that they are in the best position to reach their customer base. For retail businesses, this probably means a high-visibility location that is easily accessible from heavily-traveled streets. But, if a company has another priority, like a new location for company headquarters, the main concern will probably be to look for a place where modern office buildings either exist or can be built, at a location that is easily accessible for employees. Different motives for purchasing commercial property may require different approaches to the market, so a business that is looking to make a real estate move would probably be best served by getting the most accurate information available about market conditions in the area.
Source: FindLaw, “Commercial Property Search: Choosing the Location of Your Business,” accessed on Oct. 3, 2014