If you are a business person and you want to buy commercial real estate in Hawai’i — a new, architecturally impressive site for your offices or a larger building for your retail operation– it’s a great move to enhance your brand. However, it’s best to do some thoughtful planning before making a costly commitment.
Be aware of a few facts. Commercial property falls into three main categories – “buildings that house businesses, land that has a primary purpose of generating profit, and residential rental properties.” Commercial property can encompass a wide array of structures such as factories, hotels, warehouses and apartment complexes.
There are key financial and other considerations to think about before finalizing a deal. Investing in commercial property is a move that can pay off for you, but one that you will want to think over carefully first. Doing your due diligence to understand the risks and benefits is another necessity.
Have a step-by-step strategy in mind before buying commercial property
- Know why you want to make this investment. Be certain you have a clear, realistic purpose and goal.
- Pinpoint the kind of commercial real estate you are interested in buying.
- Secure financing. That is a step you should take prior to even seeking property to purchase. It will determine what is in your price range.
- Don’t try to go it alone. Professionals like an accountant, a real estate agent who knows about commercial property and an attorney who is well versed in commercial real estate issues would all be great additions to your team of advisors.
- Locate the property that comes closest to exactly what you want. Do plenty of research beforehand.
- You will need to get the property inspected and insured.
This is definitely not an exhaustive list of everything you should do prior to buying commercial real estate. It’s a complex transaction that requires expert help from a qualified attorney, among other professionals.