The purchase or sale of any type of property is a significant legal and financial process. Regardless of the type of property, you will benefit from knowing how you can protect your interests at every step. Commercial real estate transactions can be particularly complex, and there are specific ways you can minimize risk and ensure a successful outcome, whether you are buying, selling, investing, leasing or developing property. You will benefit from knowing what to expect at every step of the process.
Buying commercial property in Texas involves much more than simply finding a property to purchase that is within your budget and making an offer. There is a significant amount of money on the line, and you would be wise to do your research and move forward only after careful consideration. When done properly, commercial property can be a wise and financially beneficial investment of resources.
What counts as commercial real estate?
Unlike residential real estate, commercial properties can be used for a wide range of purposes. These properties are for business purposes, including storefronts, storage, industrial functions and more. The main types of commercial properties include:
- Retail — These are spaces designated for businesses that sell goods or services, usually located in areas likely to attract attention and foot traffic.
- Industrial — These spaces come in a range of sizes for uses that include manufacturing, assembling or for office space.
- Hospitality — These spaces include hotels, restaurants, short-term rentals and entertainment venues.
As you consider the purchase of commercial property, it is beneficial to first consider your motivation. What do you hope to accomplish with the property, and does it currently have the appropriate zoning designation for your goals? If you want to purchase the commercial property, have you spoken with a lender? There are times when leasing commercial property is a more practical and beneficial course of action.
How can you shield your interests?
Preparation is key before buying commercial property, including taking a careful look at zoning laws, community restrictions, price, rental costs, lease terms and much more. In addition to finding the right property that will suit your goals, you will also need to consider the potential costs. To mitigate risk and ensure that you are not unnecessarily exposed to financial loss and other problems, you will benefit from seeking knowledgeable guidance before you make a final decision about your commercial real estate purchase.