When it comes to purchasing commercial property for your business, whether it has an existing building or one that you are going to build, the land that it sits on can have massive implications for how successful you are going forward. While the location of the commercial property is critical, the zoning, and other characteristics are also important. These factors determine what you can develop and what may limit you. Let’s look at what can impact your commercial property and some reasons as to why you should be working with a commercial real estate broker.
Why Zoning, Site Characteristics, & Market Data Are Important When Buying Commercial Property
- Zoning: While you can have a well-located commercial property, if there are zoning issues or land use limitations, you may find that the property cannot be used as intended. A regular real estate agent may not know if there is a floodplain nearby, subdivision regulations, or specific zoning permits that are off-limits.
- Site Characteristics: If the property contains wetlands, or located in a floodplain, the property utilization can be impacted by these factors. If there is limited access to the property, if the property is landlocked, or if the property has harvestable resources; all of these can impact the value of the property and its desirability.
- Market Data: One key difference between residential property and commercial property is the concept of “highest and best use” or most profitable use, can really only be told by a Commercial Real Estate broker. Is the potential use the “highest and best use” and is there a need for that use in the market?
4 Reasons to Hire a Commercial Real Estate broker
- Vast Market Knowledge: A Commercial Real Estate broker has access to inside market information since they are consistently meeting with prominent clients on pieces of land that are ripe for development. The information (market data) is compiled and used to strategically market properties to the best buyers and investors within the property’s area.
- Maximizes Value: Commercial Real Estate brokers have the expertise and experience to evaluate property and analyze property value. They compare it with recent sales and provide a buying or selling price that is based on the maximum value of the property. They can also advise you on when it is the best time to purchase or sell a property.
- A Full Range of Services: When considering a commercial property for purchase or sale, you are going to need more than the negotiation of the sale price. Commercial Real Estate brokers can help in property evaluation, market assessment, asset management, and of course, the purchase or sale of the property.
- Have Qualified Sellers, Buyer or Other Key Parties: The main advantage you will receive when working with a Commercial Real Estate broker in buying or selling of commercial property is the knowledge, experience, and connections they bring to the process. While they can provide you with multiple services, they also have access to active lenders, architects and engineers, institutional private investors and other key specialist in the trade.