Finding A Great Real Estate Agent

Posted on: 31 July 2015

Whether you are buying an office building as an investment or to set up your own company there, there are some things you need to know before you make an offer. Here are some things to keep in mind as you go through the buying process, so that you can avoid problems in the future.

Investigate Zoning

One of the most important things to do when considering a particular office building is to check out its zoning. If an office building is zoned for business only, for example, you cannot convert the upper floors to apartments for more investment income. If the building is small and you may want to expand it in the future, zoning may forbid buildings of a certain size. There might also be a cap on how many tenants the office building can have.

Head to the local zoning department and get a copy of the relevant portion of the zoning ordinance; that way, you will understand what you may be able to do with the building after you buy it.

Talk to Lessees

If there are already tenants in the office building you're thinking of buying, it is a good idea to meet with them before you make a formal offer to buy the building. Many prospective buyers simply ask to see leases, but it is important that you meet with the tenants so that you can get a better idea of what their future plans are.

When you meet them, ask questions that give you a good understanding of what your relationship will be like if you buy the building. Do they plan to stay in the building when their lease is up? What grievances do they have with the current owner? The answers to these questions can help you determine whether you will need to scramble to fill the office building after you buy it, or whether there are outstanding issues you will need to address when you become the owner.

Remember Maintenance Costs

Many people don't think about the maintenance that office buildings need. Remember that, as the owner, you will be responsible for parking lot repairs, window cleaning and other maintenance tasks. When you head out to different office buildings to see if you want to buy them, be sure to ask the current owner about maintenance costs and think about those when you are coming up with your offer price.

It is also important that consider whether you will need a property manager who can handle maintenance tasks for you. The cost of a property manager may affect how much you are willing to pay for the building itself, so you might also want to consult a few property managers to find out what their fees are.

Now that you know some of the things you must keep in mind when buying an office building, you can make smarter decisions as you go through the buying process. Contact a local real estate agency, like The Lion Team, to find out more about getting the process started.