Connect with us


What To Look For When Purchasing A New Office Building

Commercial real estate deals can be complex and involved. It is for this reason that these transactions often devolve into litigation. For the most part, though, such complication comes out of simple neglect. It isn’t difficult to successfully conclude a real estate deal. All it takes is a commitment to thoroughness.

What To Look For When Purchasing A New Office Building

Know what you want

Ask yourself the following questions before you begin looking for a property:

  • Does renting make more financial sense than buying?

  • Do you want to use the property for your business alone, or do you want to rent to other businesses, as well?

  • Would you be willing to partner with another business in the purchase?

  • Are you prepared for the credit rating requirements and the down payment requirements? 

  • What is your tolerance for risk, should either your business or the property itself fail? 


If you are to intelligently participate in conversations and negotiations to do with commercial real estate, you need to be willing to learn about the business. Certainly, you could rely on a dependable real estate agency to be your guide through the process. Nevertheless, according to leading title insurance service Eastern Title and Settlement of Rockville, MD, it’s critical that you be able to rely on your own smarts to some degree as you make your way through commercial real estate transactions.

You might start with important real estate terms such as loan-to-value (the part of the property’s value that the lenders will fund), capitalization rate (the ratio of the property’s earning capacity to its purchase value), vacancy rate (a figure that helps you determine renting potential) and ad valorem (a tax rate calculation method).

Build a team

Complex transactions that commercial property purchases tend to be, you’ll need an expert team on your side guiding you as you make your way. You’ll need to retain an accountant, a mortgage broker, a commercial real estate attorney and a realtor who specializes in commercial property. For large commercial property deals, teams often include environmental advisors, notaries, tax consultants, engineers and appraisers, as well.

Understand the financing

From your personal credit to the credit of your business and lending institutions most likely to lend to you, you’ll need to put in some research to prepare to apply for financing when the time comes. In many cases, the sellers may be willing to offer financing, as well, and you will need to make a proper business presentation to apply. Here, too, you’ll need to put in some learning of your own as you work together with your team.

Take your time looking around

Since location and property type are both important to business success, you need to take your time scouting.  Not only do you need to look for the best possible location for your business, you need to put in some investigative effort determining the purposes to which each property on your list may be put, going by local zoning laws. You will need to learn about current use, rent potential, tax burden, fix-up costs and major changes expected in the neighborhood. A good choice of property also needs to make good business sense. It’s important to ensure that you can expect to be in the black each month once you account for principal, interest, tax and insurance (PITI).

Perform due diligence

Before you sign on anything that commits you to buying a location, it’s important that you first complete investigating the property. Order an American Land Title Association survey to learn about things such as improvements made in the past, boundary lines and easement access rights.

Don’t make these mistakes

If the purchase agreement requires that the seller complete improvements before the sale, it needs to be in the contract. The penalty for violations should be clearly stated, as well.

It’s important to make sure that the penalties imposed on you are reasonable ones, in the event that you need to back out of the deal at any point.

With commercial real estate deals, it’s critical that you go when with your eyes open. The environment tends to not be forgiving of mistakes.

Continue Reading

Recent Posts

Home Improvement2 months ago

How To Add More Value To Your Home

If you have some spare cash in the bank, it is likely you would like to spend it on your...

Lifestyle2 months ago

What is a Deep Plane Facelift

Cosmetic surgery is a choice that needs a lot of research and when it comes to thinking about a facelift...

Entrepreneur2 months ago

Unveiling the Demand for Digital Marketing Courses: A Comprehensive Analysis

In recent years, the realm of marketing has undergone a seismic shift propelled by the digital revolution. As businesses increasingly...

Home Improvement3 months ago

What Does an Effective Wardrobe Spring Clean Entail?

Spring is upon us which means one thing and one thing only. It is time for the annual purge of...

Business4 months ago

Your Basic Guide To Creating A Unique Investment Blog

Starting your own blog is great and once you get the ball rolling, it can be a good passive income...

Business4 months ago

3 Low-Risk Ways To Get Your New Business Started

Once you’ve got an initial business idea and believe that it will be a success, there are some basic things...

Lifestyle4 months ago

Conquering the Co-free Zone: Tips for Thriving as a Remote Worker

Adjusting to an office environment can come with its downfalls in the sense that it might be a shock to...

General5 months ago

3 Ways To Take Control Of Your Finances Starting Now

If your finances have taken over and are bringing stress to your life, we understand just how overwhelming it can...

Travel7 months ago

Best Places To Visit In The North Of England

If you live in England, you will know there are many different places to visit for the weekend. There are...

General7 months ago

Green Home Improvement Ideas

In a world where environmental concerns are growing, the concept of “green” has gone beyond a trendy catchphrase and is...

Lifestyle7 months ago

How to Host an Unforgettable House-Warming!

The time has finally come. You have moved into your dream pad, and are officially adulting in your very own...

Autos8 months ago

A Guide to Parking Lot Striping

The journey to a well-striped parking lot begins with the right paint. In this brief guide, we’ll unravel the mystery...

Business10 months ago

Business Tips For Protecting Your Finances During A Recession

In 2023, taking the necessary steps to protect your finances for your business is now more important than ever. The...

Lifestyle11 months ago

Tips For Cleaning Your Trainers

If you’re into your trainers and streetwear, you’re likely to be very conscious of keeping them looking their best! So,...

Marketing11 months ago

Branding Trends For Start-Ups in 2023

Branding is incredibly important as it impacts how your business reaches and connects with its target market. If you’re branding...