Top 4 Reasons to Purchase Retail Property

In Retail by Tim DieselLeave a Comment

Owning retail property gives you the opportunity to build equity, have more control over your business space, and be free of a landlord. Even better, over time, as the property appreciates in value, you’re contributing to your own net worth. What’s more, owning retail property means you have more power to control your business’ costs. Plus, you can rent out space to create additional streams of income.

Special Retail Property Buying Considerations to Think About

There’s no question owning retail property is a good thing. But, it’s not without its downsides. (Although the pros do seriously outweigh any negatives.) For instance, when you purchase retail property, you’re taking on more responsibility. Also, you’ll be responsible for paying property taxes, maintenance expenses, and repairs. Additionally, you’ll be the landlord, which means either going the DIY route or hiring a property management service.

Buying commercial real estate is a complex undertaking that is difficult even for experts to time right to maximize their investment value, let alone entrepreneurs or business executives whose areas of expertise are in different industries. It’s also a venture rife with risk, as buyers, sellers, agents, and renters alike can suffer the consequences of a dip or spike in demand. At the same time, for a business, on the upside the potential rewards can be substantial. —

Another consideration is finding the right commercial property in the right place. This means commercial property that’s zoned for your type of business. You’ll also need the proper licensing and to comply with local laws.

Top 4 Reasons to Purchase Retail Property

Buying retail property is a big commitment but comes with awesome rewards. If you’re wondering if this is the right move for you, then check out the following reasons to purchase retail property to see if it’s right for you:

  • You need a larger space but not more expensive rent. It’s common to find the space which once seemed so big to now feel smaller and smaller. But, if you opt for a larger space, you’ll necessarily pay more as the square footage is larger.
  • Your rent increased yet again and it will rise in the future. It is also very common for commercial rents to increase. Although it’s part of the cost of doing business, there is a point where it’s just no longer justifiable. Plus, you know the rent will only go up the longer you stay.
  • You have simply run out of space and need more room to grow. Sometimes, it’s easy to see the writing on the wall. If you’re looking into the future and see the need for a larger space that will accommodate you and perhaps others, that too, is a sign.
  • You are now in an area that no longer suits your business very well. It’s also very possible that when you opened the business, the area was a good fit. But, over time, that’s changed and now, you need to relocate for the good of your business.

If you’d like to learn more about commercial real estate investment benefits and more about the buying process, please contact me.


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