Purchasing business property is a specialized process, requiring knowledge, negotiating skills, and keen attention to detail. If you are considering buying business property, it is always best to have the assistance of an experienced commercial real estate attorney to see that you choose wisely and avoid possible pitfalls. On Staten Island, throughout the five boroughs, and in adjacent areas of New Jersey, Merlino & Gonzalez is the place to call.
First, Analyze Your Needs
Important factors in determining the parameters of your search include:
- Whether you plan to build your own business on the property, hold
the property for equity or build on the property for sale or rental
- What type of property and area would be most suitable
- Areas you want to locate in if possible
- How much capital you are willing to invest
- What types of financing might be needed and/or available
- What other kinds of help you might require along the way
Consider What Type of Property Best Suits These Needs
Much depends on whether you are buying the property for immediate development or as a long-term investment, and what type of purpose you envision for the property. There are several types of commercial real estate, including property to be used for:
- Multifamily dwellings, ranging from two-family homes to various kinds of apartments
- Office buildings, from small, commercially zoned homes for professional offices to urban skyscrapers
- Retail stores from small shops to shopping malls
- Industrial real estates, such as factories, warehouses, and distribution centers
- Hospitality real estate, including motels, hotels, and short-term rentals
- Healthcare facilities, like hospitals, nursing homes, surgical centers
- Religious facilities, e.g. churches, synagogues, mosques, meeting houses
- Special use, e.g. transportation terminals, processing plants
Make Certain Financing Is in Place Before Shopping for Business Property
Leaving financing arrangements until you have found the perfect property and are under the gun to make an offer is foolish. As with other purchases, you have to understand your budget before you proceed. Confirming possible financing before beginning your search will not only give you a clear go-ahead but will enable you to move quickly if necessary to make the best deal.
Why It Is Critical to Have the Support of a Skilled Business Real Estate Attorney
Purchasing business property, even for savvy business professionals, can sometimes be daunting, involving as it does comprehensive research, agile negotiations, and an in-depth understanding of finances, real estate law, zoning regulations, and environmental concerns. This is why you need a sharp commercial real estate attorney as an ally and an advocate when it comes to being alert to the following:
- Location, Location, Location
Just as important when discussing business property as when looking for a home, we will help you consider not only the nature of the neighborhood you are considering but its availability and accessibility to likely customers or clients, its proximity to various types of transportation and shipping paths, its parking options, its environmental and other risks (e.g. flooding, storm damage, theft, vandalism). One or another of these factors could make the difference between your purchase being a triumph or a failure.
- Legal Issues
Who better to help you with legal issues than a lawyer? We will make certain the business you intend for the property will be in compliance with all local zoning laws, building codes, and disability access regulations, and that it iscomplyll-tolerated by the community.
- Verifying the Good Condition of the Property
We will assist you in setting up meticulous and thorough inspections of the property, including investigations for asbestos, lead paint or other contaminants and for any possible infestations by insects or rodents. We know all too well how expensive it can be to have to eliminate such problems and to deal with possible lawsuits surrounding them.
- Considering the Size of the Business Property To Be Purchased
Even if the property seems perfect for your purposes, it is essential to determine if its size meets your present and future needs. On the one hand, you may want extra room if you foresee expansion. On the other, you may want to be able to rent out space you don’t need at present.
How Do You Know If A Commercial Property Is A Good Investment?
As a lawyer, we do not advise on investment specifics. However, some key factors for evaluating commercial property are 1. Financial metrics: Analyze Net Operating Income (NOI), capitalization rate, and cash-on-cash return to assess income potential and compare with market norms. 2. Market conditions: Research local economic trends, tenant demand, and vacancy rates for the specific property type and location. 3. Property condition and lease terms: Evaluate potential renovation needs, lease lengths, and tenant quality to determine future expenses and income stability. Remember, due diligence is crucial, and consulting with professionals is recommended before any investment decision.
We Will Help Make You Business Purchase Go Smoothly
With our extensive experience in the field of commercial property purchase, we can recommend realtors, mortgage brokers, inspection services, and financial experts who will assist you in your journey to ownership of a commercial property.
We are especially adept at paying attention to details right up to the last moments of closing. We will ensure that you have appropriate insurance in place and that every necessary document has been carefully reviewed before you sign it.
Contact Our Outstanding Business Purchase Attorneys Today
Our business purchase attorneys will help you cover all the bases. We pride ourselves on leaving no stone unturned when it comes to protecting our clients from costly mistakes. When you work with one of our attorneys, we will provide you with the insightful advice you require to lead you to a successful purchase.