Commercial Real Estate Questions
When inquiring about a commercial real estate property, it's important to ask comprehensive questions to gather all the necessary information for making an informed decision. Here are some suggested questions you should consider asking the owner or broker:
- What is the total square footage of the property?
- Can you provide a detailed floor plan?
- What are the zoning regulations for this property?
- What is the asking price for the property?
- Are there any ongoing costs (maintenance, utilities, property taxes)?
- What has been the historical occupancy rate?
Condition and Maintenance
- How old is the building, and when was it last renovated?
- Are there any known structural or maintenance issues?
- Is there a recent building inspection report available?
Lease and Tenants
- Are there current tenants, and what are the terms of their leases?
- What are the average lease lengths and rates for this area?
- Is there a tenant turnover history available?
Utilities and Services
- What utilities are available at the property (electricity, water, gas, internet)?
- Are there any issues with the utilities or services?
Location and Accessibility
- What is the traffic volume in the area?
- How accessible is the property by public transportation?
- Are there any planned developments in the area that might affect this property?
Legal and Compliance
- Are there any outstanding liens or legal issues with the property?
- Does the property comply with local, state, and federal regulations?
- Can you provide documentation of compliance with environmental regulations?
Market and Neighborhood
- What is the current market condition for commercial real estate in this area?
- What types of businesses thrive in this neighborhood?
- How has the area's economic growth trend been in recent years?
Potential for Modifications
- Are there any restrictions on altering the property?
- What permits would be required for renovations or expansions?
- What is the property's resale history?
- How liquid is commercial property in this market?
Remember, the more detailed your questions, the better you can understand the property and its potential. It's also advisable to have a real estate attorney or a professional advisor review any documentation and guide you through the process.