Talk to most about buying commercial real estate in Boston and you are bound to hear many of the positives, including additional cash flow and a more open buying market than one may see with residential real estate. However, even though there are certainly many benefits to buying commercial real estate in the Boston area, it is imperative to take certain steps from the very beginning to ensure you are getting the best deal possible.
In this post, we will focus on some of the top tips for securing a commercial real estate deal.
No. 1: Have a clear plan before making an offer
Like anything in life, preparation is everything. You will want to have a clear plan and know exactly how much you are willing to spend, where continued cash flow will come from and how much space you will need to fill once you buy the property. For example, if you are thinking of buying a rental property, know how many tenants already live there, if they will continue to live there and what their rent amount is. If there are retail spaces, know how many tenants are necessary to turn a profit.
In addition to mapping out these specifics, it is also a good idea to go into any deal with a clear exit strategy. This way, if the deal is not going in your favor, you can easily walk away.
No. 2: Find the right seller and location
The type of seller and the location of the property make all the difference in commercial real estate transactions. While you will want to check out the neighborhood and talk with community members about the location — before making an offer — know that a motivated seller is also more likely to negotiate and use this to your advantage.
No. 3: Meet with an attorney
Commercial real estate is not the same as residential real estate. Buying property is also often just one of the legal steps, out of many. While an attorney can help you with offers and purchase agreements, this same attorney — one who understands your goals — can continue to be an asset for many of the contract services you will likely run into, along with any development plans.
For more than 20 years, Philips & Angley has been providing legal assistance in real estate transactions and business services. We are dedicated to helping our clients evaluate decisions throughout the livelihood of their business.