Investing in a piece of commercial real estate is no easy decision. You’re looking for a place that gives you everything you need to run your business while not costing the earth. You can find yourself faced with any number of challenges including cost, location and size to name but a few.
So what do you do when you come across a property that seems to tick all the boxes? It must be too good to be true, right? Not always. There are, however, certain things to look out for which may be red flags.
1. The price is much lower than similar properties in the area
Depending on the desirability of the location you’re looking in, you may be able to find a property you can lease or buy for a below-market value. Where a property is being advertised at an amount well below the market value, this may be cause for concern. It suggests that there is something wrong with the property. What appears to be a bargain can instead turn into a financial nightmare if you have to pay for major structural repairs later down the line.
2. The area is not right for you and your business
It’s always hard to predict the future of the economy. This can make it difficult to choose a location for your business. Choosing a property because the cost is lower than another area may not always be the right choice as it might suggest the business opportunities are harder to come by. If businesses all around the one you’re looking to buy are closing down and moving elsewhere, this can be an indication of a business decline in the area.
When shopping for commercial real estate, having legal assistance can help you to make sure you’re getting the best deal for you and your business.
