Investment in commercial real estate has the potential to be lucrative. The right building could be the perfect hub for your business. That being said, it’s a significant investment that requires a lot of consideration.
Recognizing some of the more common mistakes made in real estate deals can help you to avoid them. Outlined below are some important factors to keep in mind.
Failing to check zoning laws
Zoning laws dictate what kind of business operations can and cannot be conducted in certain buildings and locations. For some businesses, you may require a permit before getting started. In some locations, it may simply not be feasible for you to conduct the type of business activities that you need to conduct.
Failing to check the zoning laws in your area could mean that you acquire a building that cannot carry out your intended functions. Ultimately, this could end up costing you a significant sum of money.
Failing to account for expansion
A building may be perfect for what you’re doing right now, but what about in a year’s time when the company has grown? Can the building cope with future demands? Is there room to expand? Most businesses look to grow quickly, particularly startups. That’s why it’s always important to factor in possible expansion into any commercial real estate deal.
The right commercial property could be the best investment for your company. On the other hand, committing to a deal without first conducting due diligence may leave you exposed.
Having legal guidance behind you will help ensure that you avoid some of the pitfalls discussed above and continue to grow as a company.