What to Look for When Searching Commercial Property for Sale
Opening or relocating a business is exciting, but searching for commercial property for sale can be a headache. If you’re not a real estate expert, how do you know what to look for? When you need a commercial property for your business in Salem, Oregon, consider these eight factors:
In commercial real estate, location is paramount. Where you’re situated influences the success of your business. Retail stores benefit from higher-traffic areas for walk-in customers, and industrial space should be nearby suppliers, for example. When looking for available office space in Salem, you need to remember convenience for your customers and employees as well. Will your customers be able to find it easily? Is it a commutable location for staff members? Keep these questions in mind as you search for properties.
2. Property Condition
You don’t want to invest in commercial properties near Salem if they’re in poor condition and you didn’t plan on property restoration. Check the building’s general wear and tear and survey the land it’s on for potential environmental issues. Maybe the previous owners didn’t dispose of chemicals properly or perhaps the property is prone to flooding often. Also, check for things like asbestos or lead paint as their discovery on your property after you buy could lead to you paying abatement.
3. Market Value
Most business owners looking for commercial property for sale in Salem, Oregon invest in real estate with the hope of selling it later. Your business expands, your service model changes, or some other factor prevents you from holding onto your property indefinitely. Purchasing commercial real estate with good market value will benefit you in the long run. The best way to know if your new property is a sound investment is to ask real estate professionals to conduct a market analysis for you.
Commercial properties are zoned for different purposes. Ensure that the one you have your eye on is zoned correctly for the type of business you run. If you’re a marketing agency you will need commercial office space; if you’re a manufacturer you should look for industrial properties. Finding the right Salem commercial property for sale depends on zoning restrictions, so familiarize yourself with Salem’s zoning laws and ensure you’re investing in the right type of commercial real estate.
Just as you apply a forward-thinking mindset in evaluating market value, you should also consider the future growth of your business. If you have plans to expand, you want a commercial property that allows for that growth. Calculate how much expansion this location would be able to accommodate before you had to move. How many employees can work here comfortably, and is there enough space for your equipment and supplies? Also, consider if it’s possible to lease part of your surplus space if your business ends up downsizing.
6. Building Classification
Building classifications help determine risk levels for commercial properties. Most office buildings fall into Class A, B, or C, with Class A buildings having the lowest risk and Class C buildings having the highest. Note that buildings used for retail or industrial purposes have separate classification systems as well. You should know how classification works for the type of building you’re interested in, relevant to the type of business you run. Understanding building classifications helps you make a better decision about your commercial property.
7. Financing Options
Before investing in commercial property in Salem, you need to know how you’ll pay for it. The financing options available to you depend on your personal and business credit scores, as well as the type of property. The most common types of commercial real estate loans include conventional mortgages, bridge loans, SBA 504 loans, and hard money loans. Keep your accountant involved in the search process and plan to get pre-approved for financing before making an offer on a property.
Your Salem commercial property should have adequate facilities to support your business. The features you need depend on the type of business you run, so it’s wise to make a facilities checklist before you start looking. The facility needs of a restaurant and IT support office will be vastly different, for example, and it’s up to you to determine what your property requirements are.
Working With Commercial Real Estate Experts
Don’t let finding your perfect Salem commercial property overwhelm you. Ask the experts at Nathan Levin Co for assistance. We are CCIM certified in Salem and have an in-depth understanding of the local commercial real estate market. We’ll help you find your ideal commercial property so you can focus on running your business.
Ready to find your new commercial property in Salem? Contact us today to get started.