Your business is starting to boom, and you decided the next right step is to finally own a space. But before you blow your budget on a mortgage, remember to be prepared. There are important steps to consider when starting to think about owning commercial real estate for the first time. Lease commercial property Westchester NY services will answer all your questions about first-time buying.
Consider different properties
Visit many properties before committing to a commercial space. Do your research on each one. Take tours of the interior and exterior of the entire building, as well as the individual offices. Find out what works for you and what doesn’t about each. Don’t underestimate the importance of property location. Locations near hospitals, city centers, and universities generally have higher property values. And often, they’ll sell faster.
Learn real estate lingo
It’s likely you’re unfamiliar with the vocabulary that the experts use in commercial real estate. Learning some of the terms will be very beneficial when it comes to looking for spaces. It will not only make the process easier, but it will also make communicating with people in the industry easier. These are some common terms people in real estate use:
- DSC (Debt Service Coverage Ratio): How much debt you’ll you’ll be able to cover each year with income.
- Vacancy Rate: Percentage of vacant properties in a time period in a particular area.
- Cash on Cash: Annual income over how much money was actually invested; it could just be the amount of your down payment.
- LTV (Loan-To-Value): A ratio of the amount of money you’re asking from a lender, versus the total value of your desired purchase.
Ask yourself questions
You need to know what exactly you want for yourself and what you’re looking for in a space. Asking yourself the right questions is the first step in purchasing commercial real estate. Some questions to consider are:
- What kind of property do you want?
- What is your preferred location?
- Does leasing or buying make more sense for you?
- What kind of property manager will you need?
- Are you willing to put work into the property?
It’s wise to hire experts to help you with the process of purchasing property. Getting in touch with lease commercial property Westchester NY services is the perfect place to start for help. Besides commercial realtors, you should also consider a commercial real estate lawyer, an accountant, and a mortgage broker. Figuring out your financing is also a huge factor to consider.
The property you’re looking for should be the right fit for you depending on your unique needs. Buying commercial real estate doesn’t have to be a complex process with the help of lease commercial Westchester NY services. Set up an appointment with one of our professional and experienced realtors at the Rakow Commercial Realty Group: (914) 422-0100.