Owning a rental property is not all fun and games, and looking to buy commercial real estate in Colorado Springs is no joke either! With the right management team and proper financial backing, owning commercial property can be lucrative, but some estate owners aren’t realistic about the pros and cons of this process. After taking a second to weigh the goods and the bads, you’ll have the confidence to buy commercial property in Colorado Springs and anywhere else.
Before we begin, let’s be clear on what is considered a commercial property:
- retail buildings
- office buildings
- industrial buildings
- apartment buildings
- “mixed use” buildings, where the property may have a mix, such as retail, office and apartments.
Now we don’t want to turn anybody off from building their business or chasing their dreams, but we want people to have clear goals when they’re purchasing a commercial building. It’s not just location, location, location that you should think about with purchasing property for your business. There’s a myriad of questions to ask yourself and your realtor, but just know our team of realtors in Colorado Springs is passionate about equipping you with the tools necessary to have success with commercial real estate.
Benefits of Buying
The biggest benefit to owning commercial property is the overall flexibility. Whether it’s negotiating your funds or the timeline of your lease, there are fewer consumer protection laws governing commercial leases. Even the type of lease varies and can give you more or less responsibility over the management of funds for property.
Having your own professional space means you can grow your reputation easier while you justify your own work schedule. Those who maintain a storefront or face to their business generally having a better flow of income as your services are more attainable to your customers and you dictate your hours.
The Bad, and the Ugly of Commercial Real Estate
The hardest part about owning any property is the time it takes to actually manage it. Some would think the financial risk is the biggest downside, but eventually you can make your money back. You can never get back the sleepless nights or countless hours it takes to create an efficient business model. You must imagine every aspect of not only running your business, but the general upkeep of your commercial unit(s) too.
Time is a huge factor to building your business, but we should still be realistic about the actual cost. Buying any property or estate can benefit your pockets in the long run, but there’s a huge initial investment needed first.
Knock on wood, but what happens when your furnace blows or someone even breaks in? Are you financially protected or do you have enough income to take care of emergencies? The uncertainty of weather and other natural disasters can truly ruin your business if you’re not prepared. Working with a legitimate property manager can minimize some of these headaches and repairs with scheduled inspections.
- Flexibility – you’re the boss, so you can call the shots.
- Reputation – if you build it, they will come.
- Constant Income – establishing a storefront makes it easier to gain new clients.
- Time – blood, sweat, and tears is the real price, but we’ll just say time.
- Large Initial Investment – takes money to make money.
- Chance of the unknown – owning space means being responsible for anything that happens; both good and bad.
If you want to have a successful business, then set your goals towards owning your own commercial space. Now, if you want your real estate investment to be successful, then get in touch with our team of realtors and we’ll find the perfect piece of property just for you!