When it comes to leasing or purchasing commercial real estate, there are tons of factors that can impact the value and how much will be paid for it in the end.
Those who need a new office space to use, a larger warehouse, or any other type of commercial property will want to be aware of the following before they start looking for the perfect building.
The location of the building is crucial no matter what type of business. Most businesses will want to be close to the city center so there are more potential customers. They’ll want to make sure any commercial real estate they choose has access to public transportation for the convenience of employees and customers.
They’ll also want to look into the amount of traffic that goes by the building each day. Higher traffic means more potential customers. Corner lots are usually more expensive, but that’s because there is more traffic passing them and more of a chance for potential customers to notice the business.
2- Surrounding Properties
The buildings surrounding the property can have an impact on the value. If the businesses are all very successful and high-traffic buildings, the property will likely be more valuable because of the increase in potential customers.
If there are few other buildings in the area or many of the buildings are closed, there might not be as many people walking or driving by, which can reduce the value of the property.
3- Renovation Potential
Most businesses will want to renovate their property to meet their needs. This will typically mean a full renovation to chance everything from the wall colors to the layout of the building so it has everything they might need. The better renovation potential also makes the property an ideal investment for entrepreneurs interested in fix and flip ventures.
So, it’s crucial to make sure the renovation can be done to fit everything they need so compromises don’t have to be made. If there are any issues with the building that will lower the potential for a renovation to be done, it could mean the property has a much lower value.
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The size of the building can make a difference as well. Larger buildings, in general, are going to be more expensive. Depending on what the business needs and their plans for expansion, obtaining a larger building might be crucial.
In this case, they’ll need to carefully choose the right size so they don’t end up paying too much for a building that’s going to continue to be too large for their needs.
Businesses looking for office space within a larger building may want to check into the amenities that might be offered. Building owners will often have various amenities available for their tenants to ensure their satisfaction with the property, but every building is different.
A higher number of amenities can mean a far more comfortable workspace, but it does also mean they’re going to pay a higher premium for space. Those looking for office space should keep their needs in mind so they don’t spend too much on a building with amenities they don’t need.
If you’re looking for commercial properties for your business, be sure to take a careful look at everything that might be offered for the one’s available today. The factors above are just some of what can impact the value of the building and may end up making you spend more money for the property you need.