Looking to Buy Commercial Real Estate In Today’s Market
Are you looking to purchase commercial real estate? At Bechard Group we are committed to helping commercial real estate buyers navigate the cursory path to identify the ‘road-map’ within the realm of commercial real estate acquisitions.
Let us begin at the first step — focusing of the purchase.
What is the focus of the purchase intended to do: start a new business, support an existing business, or are you looking to add commercial real estate to your investment portfolio? Once you know the answer to the above, you will be on the right track for the next set of questions:
- If you are looking at a new business startup, is this going to be a starter location or are you looking to expand within the location and how soon are you expecting that growth?
- If working with an existing business, are you looking to relocate your current business, expand into a new location, and or to right-size your businesses changing needs?
- If exploring commercial investment opportunities, is this your first acquisition to diversify your assets or is it an addition to your already existing commercial real estate portfolio?
Once you have decided what your reasons for seeking commercial real estate are, here are some examples of additional aspects to consider for commercial space: Retail, manufacturing, warehousing, office, land, or a combination?
- Space size requirements: Not only today but also into the future as you look to grow or adjust your business. With technology and online sourcing for sales, is warehousing necessary, are you a ‘just-in-time’ supplier or blind-ship distribution for instance?
- Power/utility needs: What type and amount of equipment will you be using such as manufacturing or restaurant equipment, office computer considerations, water, lighting, etc.? If manufacturing, is there specialization to the improvement that’s required?
- Building access: The building entry for office or medical may need restricted security access, if industrial you may need loading docks, etc.. Based on your business — i.e. retail might require high visibility; whereas, warehousing can be a back-street closer to major highways
- Visibility: Is visibility critical or non-essential to your business? A well-placed sign near a major highway can be a huge advertising bonus and make it easier for your customers to find you
- Zoning aspects – Commercial zoning affects where businesses can carry out-business activities. Typically, the local government ‘categorizes zoning’ within a city, municipality, or a county such as:
Residential: Usually divided into at least two if not more aspects including single-family; duplex; low/high density multifamily, senior multifamily; or low-income multifamily use.
Commercial: An area allowed for commercial activities like retail stores and offices.
Industrial: Industrial can be subdivided into at least two areas which includes general industrial that supports warehousing; self-storage, and then getting into the various levels of manufacturing zoning.
Agricultural: An area set aside for farming activities; however, this area is also typically part of future-use maps designation for any of the above and will specify early restrictions that will require further investigation with the municipality.
Recreational: Land used for recreational activities and sometimes is not able to be developed economically for any other purpose due to government agency restrictions.
- Due diligence — This is another key component in the commercial real estate buying process. It is meant to make you more fully aware of not only the commercial property, but moreover what is allowable. This includes the land and any structure(s) located on it as well as neighboring properties. Also, what the future assessments, future land-use restrictions being proposed are, and neighborhood ‘fit’ considerations you should be aware of.
- Financing: You may be required to gather such items as Financial Statements, Rent Rolls, Appraisals, Budgets, Tax Bills, Tax Returns, Assessment notes, etc. In working with your financial institution, accountant, and other advisors — they may also dictate what you need. The important take-away here — talk with your banker first!
1031 exchange: In working with investment sales and purchases there are a unique subset of buyers who are looking to roll-over their Capital Gains through a 1031 Exchange for selling one investment property for one or more commercial investment properties. This is something we recommend either a Buyer or Seller confer with their accountants and/or legal counsel on prior to beginning a search.
Ready to buy commercial real estate? Let Bechard Group be your guide to success. We are dedicated exclusively to Commercial Real Estate Services. Bechard Group is comprised of brokers and agents along with professional support staff who possess a genuine commitment and unsurpassed knowledge of the commercial real estate industry. We are committed to achieving superior results for our clients and customers through specialized expertise, with access to a full complement of services, and sophisticated market knowledge and analysis. Our Market is Wisconsin, and your solution is our Market.
We look forward to being of service to you,
Bechard Group Team
Bechard Group Team