Easy Checklist to Buying Commercial Real Estate in California

There’s a lot involved in buying or selling commercial real estate, and to get the maximum ROI on every investment, here’s a short checklist to ensure you’ve covered all necessary grounds.

Hire a Commercial Real Estate Agent

A commercial real estate agent will have an in-depth understanding of the market conditions, the listing process, and negotiation tactics. They will also be able to connect you with the right people, including loan officers, contractors, or a list of off-market property owners.

Business Operations Plan

Before you even start looking at commercial real estate listings, you should have defined a business plan, at least with a 10-year projection. You should also specify a growth model that will help you understand your company’s needs today regarding the future. This also includes the unique features a commercial property must-have for your business operations.

Perform an Appraisal of the Property

When you have found a commercial property that meets your business needs, you’ll want to value it to ensure it’s not overpriced. Unless you have a deep understanding of the economic variables affecting the value of a commercial property, hiring the help of a professional appraiser is the preferred approach. They will go over geo-demographic data, zoning and public ownership records, and recent sales data to establish an accurate market value of the property.

Have the Property Inspected

Hire a property inspector to get a second opinion on the property and a certified inspector to ensure you are not making an emotional decision. You’d also like to ensure that you are not going to end up paying more than you bargained for in property repairs. Your property inspector will provide a detailed report on the structural integrity, HVAC systems, plumbing, and flooring of the property so you know what you are paying for before finalizing the deal.

Study Property Deeds and Titles

Decide whether hiring a title company or performing a title search yourself is better. But avoid closing a deal without ensuring the property deeds and titles are in order. If you prefer to do it yourself, a visit to the local courthouse, or a quick search on the web, may give you the information you need.

Review Zoning Laws

When dealing with commercial property, specific regulations dictate the type of business activity you can conduct on the premises. Therefore, you should ensure that the zoning laws allow you to freely carry out your commercial activity and that the property is suitable for renovation, modification, or expansion.

Get the Right Financing

Research multiple lenders locally and nationally, and find out which ones offer the most favorable terms. Some of the variables to consider are down-payment requirements, interest rates, upfront fees, and closing fees. Also, consider both short-term and long-term financing options.

Searching for an Experienced Commercial Real Estate Agent in California?

With the commercial real estate market in the US valued at an estimated $16 trillion in 2018, we suggest you work with a trusted real estate agent when buying commercial property in California to avoid losses. Contact us today at (909) 841-0243; we’d love to be in business with you!

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