Commercial Real Estate in Greater Cleveland: Top Considerations

Interested in learning more about commercial real estate? Discover the most important things to consider when…

Hiring a Broker

Whether you are purchasing, selling, or leasing commercial real estate, hiring a broker is one of the best decisions you can make to ensure a favorable outcome. Brokers keep their fingers on the pulse of the commercial real estate industry, are connected to other professionals, and are skilled at navigating complicated commercial real estate transactions.

Brokers may have special areas of expertise, such as industrial or retail properties. Some brokers primarily represent the seller or landlord, while others work as a buyer’s broker or tenant rep broker to support the business purchasing or leasing the property.

Investing in Commercial Real Estate

Investing in commercial real estate is a great way to diversify your income streams and build your wealth. Before acquiring a new investment property, take time to educate yourself on the pros and cons of commercial real estate investing.

For instance, building a secure, passive form of income that yields high returns is one of the perks of investing in commercial real estate. But acquiring a commercial property requires a large upfront investment, and there are liability risks to consider as well. 

Shopping for Industrial Real Estate

Renting or purchasing an industrial property for manufacturing, storage, fulfillment or distribution of your products is one of the most important decisions you will make as a business owner. Before touring your first property, consider the size and layout of the space you will need for your operations. 

How about property features such as high ceilings, specialized lighting, or number of dock doors? It’s also important to make sure your desired property has a clean legal record, and that you won’t become liable for any legal violations committed by the previous owners.

Shopping for Office Real Estate

Choosing an office space for your business is a decision that should not be taken lightly; after all, the wrong location could cost you top talent, clients, growth opportunities, and revenue. It is important to select an office space that matches your brand image and sends the right message, especially if you will be hosting clients for onsite meetings.

Similarly, think about where your ideal clients and employees live, work, and play. Even if your business does great work, most employees don’t want to spend hours commuting across town everyday. Parking and ADA compliance are easily overlooked factors that should be taken seriously before making a final decision.

Shopping for Retail Real Estate

Searching for a new retail property to lease or buy? As a retailer, your storefront is a huge part of your brand identity. Consider factors such as the overall location—do your customers already live, work, shop, or dine nearby? Is the property easily accessible from major roads?

If you’re looking into a shopping center, take note of who your new neighbors will be. Lastly, consider how the available space will impact your interior design possibilities, including displays, service counters, decorations, and more.

Shopping for Commercial Land

Purchasing commercial land can be a smart decision for investors, developers, and business owners. While buying land may seem more straightforward than buying an existing building, there are still many things to consider when shopping for commercial land.

For example, zoning affects nearly every aspect of land development and usage, from the types of businesses that are allowed to operate to noise levels, parking, waste management, and more. Land valuation can also be a bit more nuanced than other property valuations, and it’s important to make sure you are getting a fair deal.

Deciding Whether to Buy or Lease

If you are looking for space for your new or growing business, you will have to make a critical real estate decision: is it better to buy or rent a commercial property? Buying comes with the benefits of more flexibility to modify that space and the opportunity to build equity, but the downsides of a big upfront investment and less flexibility to move to a new space in the future.

On the flip side, leasing requires little upfront financial risk and lower ongoing maintenance costs, with the disadvantage of operating within the landlord’s rules and the possibility of rising rent costs over time.

Leasing Out Your Extra Commercial Space

Have extra office or warehouse space your business is not currently using? Other businesses may be willing to pay for it, giving you the opportunity to earn some extra cash rather than letting that extra space go to waste. 

But leasing out your extra commercial space isn’t something you should jump into without sufficient research. Potential increases in operating costs (such as power and other utilities), accessibility, liability risks, required upgrades, and rental rates are all factors that should be thoroughly considered before you commit to renting out a section of your property.