Buying a commercial building is a major investment, and there are many factors to consider before signing on the dotted line. Fortunately, our team at Americas Choice Commercial Building Inspections, LLC is here to make your decision a little easier. Before investing in a commercial property, ask yourself these five questions.
1. Is the Property in a Good Location?
Location is everything! Investors need to feel confident that the prospective location is easily accessible and appeals to a diverse market. When looking for a location, take into consideration street access, parking, visibility, nearby competitors, and the local economy.
2. Does My Business Comply with Zoning Regulations?
Before making an offer on a commercial property, make sure the local zoning code allows for your proposed use of the property. Your real estate agent should be able to obtain this information for you. If you fall in love with a building that does not comply with local zoning regulations, you can apply for rezoning – but there are no guarantees.
3. What Is the Quality of the Tenants?
If you are considering a property with existing tenants, it pays to look at each tenant’s payment history and credit files so you know what kind of tenants you will be inheriting. Also, inform yourself about current leases and their expiration dates. Additionally, take into consideration the vacancy rate over the past five years; past performance is often an indicator of future success.
4. Can I Have a Pro Forma?
A pro forma is an extremely valuable, albeit sometimes difficult to obtain, document. A pro forma will detail the expenses and income of your prospective property. With a little help from your accountant, this information can help you estimate the possible return on your investment.
5. Are There Any Major Issues with the Building?
At Americas Choice, we inspect all types and sizes of commercial buildings and their components. Our ASTM-certified commercial property inspector will inspect the structure, exterior, roof, plumbing, HVAC, electrical, interiors, vertical lift systems, and life/safety/fire/protection equipment. We will also provide approximate costs for major components that may need to be repaired or replaced within the next two years, if the cost will exceed $3,000.
Request an Inspection
Make an informed decision on your Charlotte business venture with the help of Americas Choice. We proudly serve Charlotte, Raleigh, Asheville, and the surrounding NC areas. Contact us today at (704) 624-8444 or request an inspection online.