If the past year has shown us anything, it’s that commercial real estate can be an excellent investment. The tail end of the pandemic created opportunities for savvy investors to buy low and sell high, and as the world starts to reopen, there are sure to be more deals to be had.
If you’re thinking of getting into the commercial real estate game, here are a few tips to help you snag a good deal.
What Is Commercial Real Estate?
Commercial real estate is a term used for any property that is utilized solely for business purposes. This can include office buildings, retail space, warehouses, and more. Commercial real estate is a vital part of the economy and provides businesses with the space they need to operate.
Tips When Looking For Your Own Commercial Real Estate
Define Your Business Needs
Knowing what you need is the first and most crucial step when looking for commercial real estate. You need to know the size of the space you need, what type of business it will be used for, and any special features your business requires.
Location is the most important factor in any real estate purchase, especially for commercial properties. There is plenty of commercial real estate in Calgary, so you must know your options. You will want to choose a place that is good for business growth, meaning you should consider things like foot traffic, visibility, and proximity to other businesses. The property should be convenient and accessible to your customers and clients, preferably in a city or a town center where many people visit. Just remember that these prime spots also cost more, so find one that you can afford. If possible, also choose an area with less competition unless you’re already an established local brand.
Make sure the property you pick is the right size for your enterprise. If your business is still a startup, a smaller establishment will do, but if you own a long-standing corporation, then you may need a huge building or a warehouse. Remember– the wider and bigger the area, the more expensive the property will be. So, estimate the amount of space your business operations require. You don’t want to overspend on a large space if you don’t need it. And you also don’t want a cramped property that’s too small to accommodate your employees and customers. You must also factor in any extra space you may need for storage or future expansion.
Make a list of the amenities you want your commercial real estate in Calgary to have. You can opt for an old building that you can renovate and redecorate according to your preferences. Or you can buy a vacant lot and have a construction team build the establishment you envision. Everything depends on your budget and the nature and scale of your enterprise. If you want a company building, determine how many offices and conference rooms you need. If you’re into the restaurant business, consider whether there is a kitchen and enough space for customer seating. If you want to build a hotel, account for all the rooms and recreation spots. For every structure, don’t forget to include hallways, reception areas, storage, restrooms, and parking space. Also, check if the area has necessary water and electric utilities.
With these factors in mind, you’ll be well on your way to finding the perfect piece of commercial real estate in Calgary for your business. These will help you narrow your search and find properties that are a good fit.
Research the Market and Understand What You’re Looking For
Before you start looking at Calgary’s commercial real estate, it’s essential to look into the market and understand what type of property would match your business needs. There are many different types of commercial properties, and each has its own set of benefits and drawbacks. It is important to know your options so you can compare them and find the best one that suits your purpose and budget. You must also pay attention to aspects like clean land titles, zoning regulations, traffic patterns, and the overall condition of the properties for sale. You wouldn’t want a property that will give you headaches in the future.
Work With a Qualified Broker
Find a reliable land broker in Calgary to handle your commercial real estate purchase. A qualified broker can help you navigate the complex world of commercial real estate and find the perfect property for your business. They have extensive knowledge of the market and will be able to help you find the right property at the right price.
The best part of hiring a land broker is that they can assist you with negotiations and paperwork, so you can get the best deal possible without the hassle. They can help you navigate the often complicated process of real estate purchasing and make sure everything goes smoothly. To add to that, they can also connect you with other professionals like land inspectors and land lawyers who are necessary to ensure that there are no hitches with the transaction and the property itself.
Get Your Finances and Payments in Order
The price of the property is one of the most important considerations when purchasing commercial real estate in Calgary. There are many additional costs like property taxes and insurance, so be sure to factor in all expenses when coming up with a price range. Stick to your budget and only buy what you can afford. Don’t overspend on the property just because you think it will appreciate in the future.
Furthermore, you must also have the required amount on hand. Don’t start making deals and participating in property biddings when you don’t have enough money in your bank account. If you’re still soliciting funds, keep in mind that commercial loans can be difficult to obtain, so it’s important to get pre-approved before you start looking around.
Be Ready for Property Risks
You must know the following risks associated with commercial real estate so you can avoid and prepare for eventual problems:
These include the possibility of damage to the property from fire, floods, earthquakes, or other natural disasters. If the property is not properly insured, you will be left with a large bill for repairs and maintenance costs.
These include the possibility that the property will not produce the income that was expected or that the costs of operating the property will be higher than anticipated.
These include the possibility that zoning laws will change in a way that reduces the property value or that environmental regulations will be enacted that make it difficult or impossible to develop or operate the property.
Have Realistic Expectations
Remember that commercial real estate transactions can take longer than residential ones. You should be patient about the timeline of the purchase process and the progress of your business in your new commercial property. It’s important to note that commercial real estate is a long-term investment. Don’t expect to see immediate results or huge profits right away. Patience is key when it comes to this type of investment.
Put These Tips into Action
If you’re considering purchasing commercial real estate, these tips will help you snag a good deal. Commercial real estate can be a great investment for your business, but it’s important to work with a qualified land broker and get your finances in order before making any deals. Hansen Land Brokers Inc. can help you with all your commercial real estate needs in Calgary.
Hansen Land Brokers Inc. is a full-service land brokerage company that has been serving the Calgary area for over 30 years. We have a team of experienced brokers who are familiar with all facets of the real estate market. Whether you’re looking to buy, sell, or lease property, we can help you. Contact us today to get started.