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What are the most important things to know when evaluating a potential commercial real estate purchase?

Joseph Givens

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The BAF Group LLC

The first thing to note is that this really is not appropriate location for your question. This website is dedicated to the purchase and sale of Businesses, not Real Estate.

However, many of the Business Brokers here, including us, are Licensed Commercial Real Estate Brokers can offer you a bit of insight. The question you ask is really very vague, making it difficult to answer you in very specific ways. For example, are you evaluating the property has an investor, as a user, or a combination of the two? Your intended use of the property and your investment objectives are also critical.

But you certainly want to ask the age, whether there has been any deferred maintenance, and he reported EPA issues, the age of the roof, the nature of the HVAC conditions, whether it is ADA compliant, as well as other physical plant questions. The neighborhood is always vital, in terms of the vacancy levels, competitive prices for both sales and rents, the age of the various buildings around this one, and whether they are kept in good condition. You want to ask for a rent roll, if you are to be a landlord, and the relative stability of the tenants, whether they pay or a timely fashion, and when their leases are up. It is a long and arduous task.

Mar 19, 2014