5 Things you should Look for when Purchasing a Commercial Real Estate Space

Real estate industry is one of the rapidly developing industries globally with numerous changes taking place in the industry. For instance, most commercial real estate business owners are shifting from renting to owning their own plots as result of reduced commercial real estate prices. For instance, in 2013, RCA/Moody’s Commercial Property Price Indices found out that the prices for commercial real estate had dropped by 20%. Currently, the price is expected to have dropped even further. For this reason, it is important to be categorical and specific on the nature of a commercial real estate space before going ahead to purchase it. Below are the key factors to consider before buying a commercial real estate space.

Nature of your Business

It is important to take into account specific type of commercial activities that define the nature your business. For example, if your business involves more retailing activities, consider availability and size of parking space. Conversely, if it involves distribution, you will require a large dock.

Similarly, the nature of goods and services you will be dealing with matters a lot. For instance, if you are planning to buy a commercial space for establishment of a road construction company, you will need a larger space for parking of the trucks as opposed to a commercial space for establishment of smaller rooms for information and technology.

Legal Matters and Allowable Uses

Legal matters include zoning laws and other issues that require compliance with government and administration laws and guidelines, including land registration. Adherence to these matters offers you peace of mind in your commercial activities as well as your customers, clients and workers.

Consider buying a particular commercial real estate space if the kind of commercial activities you are planning to undertake are lawfully allowed by the zoning laws. For instance, some regions prohibit construction of flats. If you are planning to establish rental houses, then such a place may not be suitable for you.

Similarly, some laws may limit the operation of your commercial business to specific time duration. If you are planning a long-term commercial investment, such a place may not be ideal for you.

Future Expansion

Nearly every form of commercial business is subject to expansion. Therefore, while purchasing a commercial real estate, ensure that it is enough for any project you may want to establish in future, or general expansion of your business.

Location and Proximity

Your business is entirely dependent upon the your present and prospective customers. Before purchasing a place for your commercial business, it is important to consider availability of customers and clients. For instance, if you are intending to establish an agricultural processing firm, ensure that the nearby residents widely consume the products you will be processing.

It is also important to consider how accessible the place is to your customers. For example, establishment of a restaurant would require close proximity to the main motor road.


Security is a focal issue in any investment. Certainly, you wouldn’t want to operate your business from an area that suffers perpetual theft and criminal incidences. It is therefore important to analyze the area’s security situation in the recent past and make your decision based on the safety of your commercial property.

In summary, buying a real estate commercial property requires critical analysis of a number of prevailing factors as discussed above. Ensure that the place you are seeking to purchase satisfies all these requirements among others, before paying for the real estate commercial space if you have to run your commercial business safely and successfully.