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Congratulations! You've finally decided to start the business you've always dreamed of. You've drawn up the logo, printed out business cards, and established a budget to find the perfect spot to begin your journey to success. But first, you need to know the temperature of the waters of commercial real estate before diving in. Here is some important information about buying, selling, and leasing if you're working with commercial brokers in St. Paul, MN. Buying When it comes buying commercial property, the old saying stands: location, location, location. It's the most important detail that could make or break your business. A "hot" part of town today could easily become a real estate dead zone the next. Take care to evaluate the property yourself to discover any issues that could be fixed in remodeling if you were to purchase it such as unfinished repairs and gaping holes in the ceiling. Make sure to also talk to your agent about the limitations of alterations due to building codes and zoning laws. Also be aware of harmful chemicals like asbestos and lead paint. If you find that everything checks out, discussed it with your team, and you like the property, don't buy it just yet! It's good to shop around other locations, then weigh the better options against each other before choosing the best one. Then it's just a matter of negotiating prices and securing your financials for how much you put down and how much you put into the location. Leasing Most of the information discussed in the buying section can be applied here; however, with leasing there are fewer risks taken than with buying. With leasing, you're only obligated to the rules of contract given by the owner of the property. Before signing, take time to read and fully understand the nature of the contract. Sometimes, contracts can be made in favor of the landlord and tenants unwittingly succumb to their demands because they didn't read before signing. Luckily, all contracts are not uniform and you can negotiate the terms so that both parties are satisfied. Commercial property is usually quoted by the month or year and by usable square feet. The best case for a lease is one that's short-term, perhaps six months to a year, with the option of renewal once it's up. This way you're not stuck with a two-year lease if your business fails or outgrows the space, and you avoid losing the space if the business succeeds. Selling Whether your business flourishes and you're looking to expand it or it falls through, it's time to sell the property. Find a commercial real estate appraiser to determine the value of the property, then list it on the business databases and wait. This, of course, is easier said than done because simply listing your property on commercial real estate websites doesn't mean it'll be sold within a short frame of time. Selling takes time and if the market is bad, it will take even longer for any potential buyers to look at the property. Worst case, you could lose the liquidity in the property and can be subject to foreclosure if you're not able to make the payments. Use tools like social media and establish relationships with people that will increase your chances of selling faster in conjunction with commercial brokers in St. Paul.
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