In commercial real estate (as in any other purchase), it is possible to find cheap. Cheap is exciting for a moment, until you start thinking about the risks and whether that property will really work for your needs. And how much will you need to invest to make it work?
But then there’s value. Value is IT: the ideal sweet spot of low cost and high worth (or potential future worth). It’s the property that doesn’t work for anyone else (for whatever reason), but just happens to be ideal for your needs. Those gems are hard to find, but well worth the search. So what are the keys to seeking out the hidden values in any commercial real estate market?
Where to Look
The best commercial real estate agents discover hidden values for their clients by knowing where to look.
Registrar of Deeds
While commercial real estate listing sites and foreclosure listings are common sense sources for a first look at the deal to be found in a specific area, auctions hosted by local law enforcement, courthouses or registrars of deeds can be less publicized sources for hard-to-find values. The key to separating the cheap properties from the values is to do your research: figure out why the property is priced so low, identify all of the pros and cons, and assess whether the property could work for your business needs. If redevelopment or significant renovations may be required, talk to a contractor to determine the true cost estimate for the project and whether it’s realistic for your budget before jumping in with both feet.
Who to Contact
To uncover why the property is priced low, there is only so much you can learn from online research and mapping. The most direct resources are often key individuals who have access to more comprehensive information about specific properties, such as:
A local government developer
A brief conversation with any of these key people could be the turning point in determining whether this property is perfect for your business needs, or not worth the trouble.
What to Look For
Key questions for any commercial real estate property should include:
Does the property have existing liens?
Are back taxes owed?
What is the history of the deed?
Are there zoning issues or restrictions?
Are there existing environmental concerns such as contamination or flooding?
What is the neighborhood context?
With the right preparation, research and connections, it is possible to find commercial real estate bargains that are a fit for your business needs.
To learn more about commercial real estate bargains in Currituck County, N.C. – a growing region just a short 30 minutes from bustling Hampton Roads, Va. with aggressive local and state incentive packages for businesses – download our free guide, 5 Reasons You Should Be Thinking Currituck.