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What factors should I consider before buying commercial property?

The acquisition of commercial real estate is a major transaction for a buyer. Acquiring commercial real estate in Arizona is both a financial and a business decision that should be made after careful consideration and planning.

Location is often listed as the most important factor in the acquisition of real property. Whether a person wishes to develop a shopping mall, industrial property, or office building, the location of the property is vitally important. A realtor knowledgeable about Arizona real estate options can provide invaluable assistance with this important factor.

Another crucial factor to consider, and one a potential buyer may want to consider even before location, is whether he or she wishes to buy property or to lease it. Buying property will give the owner more control over the property and could prove to be an investment if land values are increasing. It may also provide tax benefits for the owner.

However, once a person buys the property, the owner will then be responsible for maintenance issues and may not have the same liquidity he or she had if he or she had chosen to lease the property. Leasing may provide more flexibility, as it does not require making as much of a financial commitment.

Making a major decision such as the one to acquire commercial real estate, or whether to buying or to lease, should not be made alone. In addition to the assistance a realtor can provide, an attorney experienced in commercial real estate law may be able to provide assistance to identify and resolve any potential problems.

An attorney may be able to facilitate the transaction by preparing essential documents and answering questions about permitted uses of the property, as well as potential development opportunities. Property owners must comply with all zoning laws and restrictions on the property, along with acquiring the appropriate permits. Attorneys versed in commercial property transactions may be able to assist in facilitating Arizona commercial property transactions.

Source: The National Law Review, “Commercial Real Estate Sales: Initial Considerations in the Purchase of Commercial Real Estate,” Brittany C. MacGregor, accessed Mar. 19, 2015

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