If you’re thinking about buying commercial real estate in Calgary then there are a number of important questions you need to have answered before you take the plunge.
It doesn’t matter if you’re buying a commercial property to construct a building, buy an existing one or purchasing the property for investment purposes.
One of the most important things to remember is that it is never too early to start the planning process. If you’re going to buy commercial real estate you should start putting your team together right now.
This includes your commercial realtor, lawyers, builder and designers, financial and tax advisors, commercial insurance agent, environmental inspectors and any others applicable experts and specialists to assist you in your commercial purchase.
Here are some of the most common commercial real estate questions that many entrepreneurs should be asking.
1. What Type of Building Is Required?
You have to think not only in terms of what space you need, but also consider a long term plan with growth in mind. You have to do some serious demographic research to understand if this location will provide you with traffic or meet other needs such as transportation or warehousing.
2. What Are Your ‘Must-Haves’?
To find a commercial property that meets your absolute essential needs, it is advisable to draw up what you absolutely need to fulfill your business expectations. This could include size, transportation hub, parking, machinery, environmental issues, zoning and a whole host of other issues relevant to your particular business model. The list is incredibly extensive and needs to be realistic.
3. What Equipment Will I Need?
You need to perfectly clear on what technological or machinery requirements you will need. It can range from HVAC, heating, electrical, computer servers and a whole host of other specialized features that will run your business.
4. Will I Need Title Insurance?
Purchasing title insurance should be included in any purchase of commercial real estate as it can protect you in a variety of nasty legal issues that can crop out of nowhere. You should always thoroughly investigate the history of a commercial property in any event.
5. What Will My Lawyers Need?
Since all commercial investment transactions have different needs, the easiest approach is to touch base with your commercial real estate lawyer and have the lawyer advise you on what you need to proceed with a purchase so your paperwork is assembled beforehand. If you are in partnership you will also want to clarify issues relating to the property title.
6. Should I Hire a Building Inspector?
Yes, you should always have an existing commercial property properly inspected by a reputable building inspector. Additionally, you will have to perform some form of environmental assessment in any event as well. If you are financing the property, just about every lender will require that your commercial property be properly inspected and an environmental inspection performed.
These 6 simple questions just scratch the surface of what you really need to ask to start the process. Issues such as financing, hiring architects and contractors, property taxes, zoning issues, appraisers and many other specialists will get you started in organizing your questions to ask.
Preparation and a methodical and systematic approach will make your commercial real estate transaction run smoothly and successfully.
Photo By Wallyg
