Buying a commercial building

[KingConstruction]

I found a 1,300 sf shop near me, that is going for cheap that I'm thinking about buying, instead of building a pole barn or something. It's an all brick building 12' ceilings, with a 6" thick concrete slab, so its thick enough for a lift, and has 200 amp service. Is there anything I need to know about buying a commercial property thats different from buying a residential property?

 

[Hades12]

In this area it is nothing specail. Trash pickup can be higher.

 

[hetkind]

yes, make sure you do an environmental assessment or else you will be responsible for any past environmental sins that have occurred.

Howard

 

[mrb]

depending on where you are theres all kinds of codes you have to comply with, possible business license, fire permit and inspections (which turns into expensive fire extinguishers, flammables cabinets, etc) Sounds like a good opportunity though. Go talk to the city and find out what you need.

 

[KingConstruction]

It shouldnt have to much in the way of environmental stuff because it is just the building, it has no land with it. Its on Main Street here in town with a Carquest right next door, along with a machine shop and hardware store a couple buildings down, so getting parts for projects will be extremely nice

 

[jmack]

Are you talking about that narrow brick building near the corner of Jackson St that backs up to the railroad tracks? I heard that that place just sold on Monday.

 

[KingConstruction]

No this one isnt in Cicero

 

[GT89mustang]

Taxes might be higher then a residential area

 

[rsanter]

positives

if you move (house to house) you dont have to move all your garage/shop stuff

you are buying an investment that you have the option to sell at a later time if the value jumps

negatives

depending on how far from your house it is, you may not want to take the drive just to do a little work there.

not having someone there everday can be attractive to a thief

insurance will be more than if you just put a rider on oyur homeowners

another utility bill

the brick building itself. brick buildings can have problems of their own as they age


dont want to discourage, just some thoughts

bob

 

[Charles (in GA)]

Most certainly will want a security camera system, itself locked up so a their cannot get to it to disable it. I would look at insurance cost before hand for sure. Electric rates will most likely be commercial.

Charles

 

[NUTTSGT]

Check to see if the property taxes will be commercial or can it be switched to residential.

 

[MadMark]

Check to see if the property taxes will be commercial or can it be switched to residential.

I have been thinking of looking for something like that also, since I live in a large NE city and no longer have a place to work in.
but the property taxes and the possiblilty of theft are a real turnoff.
You should see what comes out at night after four or five pm when all the workers go home.

 

[MadMark]

Check to see if the property taxes will be commercial or can it be switched to residential.

Keep us posted on how it goes.
I would like to do the same, since I live in a big city in the NE and no longer have a place to work. but the property taxes and possibility of theft are a real turnoff.

 

[scottg1952]

I leased a property in fabulous downtown Camp for a while.
Everything cost more. Phone, lights, garbage, everything nearly double.
I'd love to buy one, but I'd have to generate enough income to keep it.
I'd be really cool to get one rezoned residential. Ask the county, maybe they'll let it go just to have it occupied?
yours Scott

 

[KingConstruction]

Theft shouldnt be to much of a problem, the fire station and police dept are just one block down, plus its right on the main street of town and its only about 15-20 mins from the house. Taxes arent bad either at about 500 for the year, and maybe since I dont plan to run a business out of there I can talk to somebody and get a residential rate. I dont have to worry about trash service cause I can just take stuff over to my dad's store and he also has a company that comes in and buys their used oil an takes the antifreeze so I wont have to worry about disposing of any of that.