There are many ways for small businesses to enter the commercial real estate market in Arizona. Businesses can start by leasing property, move to own their own facilities, rent a portion of the facilities for additional income stream, and or sell and leaseback their facilities for maximum return on their investment. No matter how you enter the Arizona commercial real estate market as a business owner, you are going to have to do some research to learn to navigate your way through the process of purchasing.
Upon deciding to purchase commercial property in Arizona, you should do two things. First, you will want to be sure that you have the appropriate capital, whether equity, debt or a portion of both. Second, you should find a knowledgeable commercial real estate broker to guide you through the process.
The capital piece can be made easier through the right capital (equity and debt) sources. There are traditional forms of financing, such as obtaining a mortgage through a large bank and there are nontraditional avenues such as finding private investors to invest in your company. The intricacies of funding will not be covered here, but you should understand that it is essential to be proactive regarding all of the steps of the purchasing process.
Finding the Right Broker
Finding the right commercial real estate broker may seem easy, but it can be a challenge. You will need to look for a firm that is familiar with the ins and outs of your specific industry and real estate needs associated with this industry. You want to search out a broker that is well versed in the laws and regulations behind your type of business. Finally, it helps to have someone that is experienced in both the commercial real estate industry and the industry in which you conduct business.
The Rest of the Puzzle
Once you have the finance and broker pieces of the puzzle together, you can dive into looking at specific properties that suit your needs. If you found a great full-service commercial real estate broker, they will likely have a vast amount of inventory for you to review. Looking at many properties is excellent, and you should always go into each viewing with an open mind. A lot of the time, business owners judge a listing by the photos they see, and will tell their broker that they are not interested in seeing a property. If you have the time, always go and look at sites that your broker thinks may be a good fit for your business. If they are well versed in your field, they probably have a good idea of what will fit and what won’t.
Once your search is narrowed down to a few choices, sit down and think about which property is the right fit for you. Business owners will often jump on the first property that they see, only to realize after moving in that they need to make significant changes to the layout, or that it is too far away for some of their current employees to travel to on a daily basis. Sitting down with your real estate broker and fitting all of the pros and cons of each property to your business model will help you to make the right choice in the end. Remember, you are purchasing property, this is a long-term investment in your business. Carefully considering how the new location will affect each aspect of your business is highly recommended.
Once you decide on a property your knowledgeable commercial real estate broker will guide you through the rest of the process. Depending on the property, if there are any structures on it, and what type of financing you have chosen, you may need to have multiple professional inspections done. There may also be requirements that the property and the title are surveyed.
Once you have secured your small business real estate, you are on your way to starting out in your new location.
R.O.I Properties offers decades of experience in the commercial real estate industry in Phoenix, Arizona. Our brokers can help you figure out what the individual pros and cons of owning vs. leasing would be for your specific industry and stage of business development.
Give us a call today. We would love to help you get the best commercial real estate deal possible in the Greater Phoenix Area.