Buying a property is a process that to be successful starts and ends with your commercial real estate professional. The process can be long and expensive but in the end well worth the effort. Here are just some of the reasons why it makes sense to purchase property in today’s market:

• Builds equity and future appreciation in the asset.
• It makes your monthly outlay constant avoiding future rent increases.
• Saves on taxes through deductions such as interest on the mortgage, property taxes, depreciation, maintenance, repairs and other expenses.
• Gives you a vested interest in the improvements you make to your property.
• Becomes a hedge against inflation.
• Allows you to customize your space to meet your needs.
• Legal and Estate Planning advantages when placed into a Trust.
• Adds to the intrinsic value of your business.
• Gives you the ability to finance any improvement that may be required.
• Uses leverage to improve your investment.

We have seen instances where an individual just jumps into the real estate fray. An opportunity to purchase a property he had been leasing goes bad and a mistake is made by attempting a do-it-yourself transaction. They choose not to involve the professionals who can help protect them and ensure a profitable ownership experience. The allied professionals to whom we refer would include the real estate broker mentioned earlier, a good real estate attorney, a CPA with expertise in real estate, a surveyor, as well as a civil engineer and an architect.

First of all, a good commercial realtor knows the market-they knows the current prices per square foot of his particular market responsibility, the current lease rates as well as the required tenant improvement allowances required by today’s tenants. He can also qualify potential tenants financially and ensure a good tenant mix required in today’s successful multi-user spaces. A commercial realtor is a bargain for the buyer because they is normally paid by the seller. However, the can represent and be paid by the buyer for a nominal fee. Any buyer fee is normally recovered several times over through savings realized by the buyer when he takes advantage by using a commercial realtor’s market expertise.

The real estate attorney will review and recommend changes to the real estate contract, define and create the acquisition entity as well as communicate with the seller’s attorney during the entire transaction process. Your CPA will help you set up the property in the most advantageous way for tax treatment whether the property is to be used for investment or as part of your business and will keep you updated on the most recent tax law changes.

A survey is extremely important in determining exactly what you plan to own. It can show encroachments, easements, right of ways, and the exact size, shape, and legal description so you get and understand what you are paying for. A civil engineer helps you comply with a municipality’s zoning, setback, and buffering regulations. Last, but not least, an architect can help lay out and specify what can be built or how the existing space can be changed whether it’s a new building or one that is to be renovated.

Obviously, there can be other professionals that you may need to deal with depending on the scope and complexity of your project but these are the most common and will be the ones who can help ensure that your acquisition is a success right from the start.

A knowledgeable commercial realtor will help your sort through the myriad properties currently available in today’s market including bank owned and other distressed properties. After the purchase has been finalized he can help bring the property up to 100% utilization whether by leasing up the investment or by filling any available space not required by the owner/user.