A Checklist for Buying Commercial Property

Even considering to purchase a commercial property could be a daunting experience for both a seasoned or an inexperienced investor. However, having a checklist on hand could help you in speeding up the process. It could also help in efficiently diverging the common pitfalls of high stakes transactions like considering to own an available commercial property for sale in Mumbai.

All you need to have is some basic knowledge to overcome the myths and ensure everything goes smoothly. As with any transaction in real estate, do your homework first. Buying commercial and industrial property could be one of the most profitable ventures of you to invest in.

Here is a checklist to assist you in making an informed decision:

Your Budget

Surprisingly, you can get your hands on a commercial property at affordable rates. Due to the economic slowdown induced due to COVID19, commercial property rates have come down. So, firsts of all, determine your budget and then explore the market to find if there are any properties available within your budget.

Deciding Location

For any real estate purchase, be it commercial or residential, location is of paramount significance. Due to the shift of people from inner cities to the suburbs and outer areas, looking towards the outlying areas could be a good option. At the same time, a small factory located in the inner city could be a great bargain. And if the need arises, you can convert the building into either a commercial or residential property if need be.

Knowledge Regarding Zoning Laws

The main reason for the shift of industries moving out of inner-city is the restrictive zoning laws. What once were commercial/industrial localities have now been refurbished along with strict noise restrictions in place. There is a ban on the use of certain chemicals in the inner city areas as well. You can get all the zoning details you need from the local council.

Condition of the Property

You must ensure the structural soundness of any property that you purchase. When you are buying an industrial property, and want to use it for commercial purposes, look for any indications of chemical spills. Also, check for underground fuel storage areas. If there is a need for renovation, it can be an expensive process to remove materials containing asbestos.

Thinking it Through

Ensure you are making a rational decision. Take the property’s previous returns into account along with its location and rental yield. See that the building you are thinking of buying compiles with the local, state, and federal regulations. Also, find out the kinds of developments that are planned for the area as well as existing and anticipated zoning regulations.

If you are buying a city location, see that the building is adaptive to changes in the zoning laws.

The Prospect of Leasing Property to Tenants

A building can have everything you are looking for but it may not have the facilities tenants require. Does it have easy access? Does it have sufficient parking? Does it offer connectivity to transportation and the rest of the city? Adaptability is a must. A commercial or industrial property should offer adaptability to an expansive range of business needs.

Having said that, make sure that your building can adapt to those changes and lure in tenants as well.

As a first-time investor, it is natural to miss some important details. You can get help from a reliable commercial real estate agent. Stay up to date with the real estate news and the localities where the best real estate developers in India are putting their money in. Browse, ask questions, and take notes. Decide only when you find a property that satisfies all your needs.