Are you thinking of buying commercial real estate? If so, New York is the best place for entrepreneurs like you. With over 18,000,000 people living and working there, it is a perfect place to start your business. And if you want to start a business, you’re going to need a place to station it. Whether you already have experience in this area or have no idea how commercial real estate works, we would like to help you out. And that’s why we made you a guide to buying a commercial real estate property in New York City. Don’t worry! We’ll try to keep it as simple as possible.
The Big Apple
One of the most populous cities in the USA is a perfect place to invest in and buy commercial real estate. Why? With a constant inflow of people and job market growth, you’ll have a bigger chance of success. And with diverse nationalities and a colorful business market, it is a perfect opportunity for starting a business or expanding one. Yes, the expenses may be higher than you’re used to, but that only means that your profit will be too. So, earning money? Check!
Make it here – make it anywhere
The world’s business capital aka the Big Apple is the city of endless possibilities. Also, Forbes named NYC one of the best places for small businesses. And with the third-largest economy in America, the state of New York is a true economic powerhouse. What better reason for buying a commercial real estate property in New York City and start your own business? Or relocate your existing one to a new space.
Looking for a new space? Not a problem
Already got a business on your own, but you need bigger space? Once you find a property that fits your needs, you can start planning on packing and moving things to your new office. Make a list of all the things that you’re planning to move. You want them to be safe and undamaged, so what you need is to obtain the best material for packing. Nowadays, more and more people choose to go green and use recycling materials. So why not join them?
Commercial Real Estate 101
One thing that you should keep in mind is whatever you know about residential real estate, probably doesn’t apply to commercial real estate. And that’s ok. That’s why we’re here. For instance, commercial real estates (CRE) are usually more expensive than residential. But there’s a reason for that since the CRE has the potential to generate more money.
Guide to buying a commercial real estate property in New York City
First of all, you want to get familiar with the CRE buying process. Here are few things to pay attention to before you begin:
- Learn the language – familiarize with terms and concepts commonly used in commercial real estate
- Find a market – analyze each market you may want to invest in to find the right area for you
- Find a mentor – attend RE networking events, or ask your existing connections to meet someone with commercial investing experience
- Visit properties – visiting properties can help you narrow down your options if you have more than one investment you to choose between
- Protect your assets – look into the way your business is currently organized and how a commercial property will fit into that
Types of CRE
There are four types of CRE according to their use:
Consists of real estate used for office buildings. Skyscrapers and high-rises in urban areas, and office parks and mid-rises in suburban areas. Space can vary in size and style, and the lease terms are often longer – five to ten years.
These properties offer residential housing in exchange for monthly rent. Apartment buildings, apartment communities, townhomes, and co-operative are considered multi-family real estate (size and number of units may vary). The lease agreement is flexible in terms of duration. It can be short-term and long-term, though usually, it’s no longer than a year. So bear that in mind if your employees are relocating for a job at the same time.
Includes properties that provide the space required for retail business. This type of CRE can be developed in shopping malls, strip malls, factory outlets, and other shopping centers. Similar to multifamily properties, the lease agreement is somewhat shorter – mid to long-term or 4-5 years.
Used for industrial business operations. This includes warehouses, assembly, heavy manufacturing, and research and development buildings. These properties aren’t located in residential areas, due to zoning regulations that apply to their industrial business operations. The lease agreement length is five years and more.
Secure your finances
Before you find the CRE property that you like, we advise you to look into your finances. If you want to apply for any type of loan, you should prepare your credit scores and reports. Make sure that the information is accurate and that there are no errors. Depending on your credit, the property you want to buy and etc, there are different loans you can apply for:
- Commercial Real Estate Loans
- Apartment Loans
- Business Loans
- Hard Money Loans
Find the right CRE property
Now that you got to know something more about CRE and when you’ve secured your finances, you can start shopping. First, you have to find a list of CREs. And there is more than one way to do that:
- Real Estate Listing
- Real Estate Agent
- Approach owners directly
- Real Estate Investment Clubs
- Family and friends
Make sure to pay attention to important factors, like usable square footage and location. And when you choose one, make sure to contact capitalcitybins.us regarding everything there is about packing your goods for moving.
Close the deal
Once you find the property that fits all your needs, you want to make an offer. But if you still have some doubts, be sure to consult a professional, or your mentor that we mentioned before. It’s perfectly normal to make sure everything is in order before investing your money into something.
Buying a commercial real estate property in New York City, so as in any other city, can be challenging and exhausting especially if you’re relocating your warehouse to the new location. It surely does have its pros and cons, but so does any investment. So don’t let that discourage you. It could be a great new experience.