Questions to Ask, When Buying a Commercial Real Estate Property

Upon seeing a sign of “For Sale” on a commercial property, the first thought that comes to the mind of potential buyers is that it may be the property of their dreams. They stop to examine the property and to have an idea that whether it is the one they are looking for or not. They sign a check for it in the case they like it; otherwise, they go ahead in the search for another property.


If you are thinking that the process is so simple, then you are wrong. It is not all that is done before buying a commercial real estate property. There are a number of facts that you need to consider for making sure that you are going to take a wise decision by investing in that property. And for that, you need to take the help of a commercial real estate agent. So, if you are having a real estate property in your buying list, then here are the few questions that you should ask before purchasing it.

  • Is the location good? 

Location is the first thing that you need to consider before buying any real estate property. And the rules for buying a commercial real estate are slightly different. A location that looks best to the house buyers may not be fit for the commercial investment. So, you need to consider and ask that whether the property location is good for attracting high occupancy or not.

In addition to location, you should also consider that whether the property is having any access or visibility along traffic corridors. Employment and the strength of the local economy should also be considered.

  • Ask about the property zoning code

Get it verified by your real estate agent that whether the zoning code of the property allows you to use it or not. Though you can get seek re-zoning, but all properties do not become eligible for that.

  • Is there any tenant?

If there is a tenant, then review the rent rolls, credit files, payment histories for current tenants and determine the associated risk. Also, have a look at current leases to know the tenant and landlord obligations.

  • Is there any big issue with the property?

The property may be demanding expensive repairs, may have some obligations or there may be some legal liabilities for new owner. So, like house buyers, do your due diligence to find if there is anything like this. You can take the help of your commercial real estate agent to get the answer of all these questions.

>>Also read these 10 Steps for a Hot Commercial Real Estate Deal <<

  • Are there any operating expenses related to the property?

Before making an investment, check all the financial documents to ensure accuracy in the accounting and income projections. As these records leave an important impact on the value of the property, the seller would be required to keep them available upon request.

Once you have ensured all these facts, you can expect a seamless transition of your ownership.