Commercial Real Estate in Penticton
With 2018 well underway, we are looking ahead to another busy year with respect to listing and selling commercial property in Penticton. Due to the recreational nature of our dual lakeside city, commercial real estate in Penticton is always revolving.
In this article we will explore what first time commercial space buyers in Penticton should consider in order to prepare for making an offer on a property. We have also included tips on financing, planning and building. These tips are designed to get you thinking about items you may have not considered prior to your search for commercial real estate for sale, but of course nothing will leave you more prepared than spending some time with a knowledgeable commercial sales agent, who knows the local market. Once you’ve had a chance to read our tips on buying commercial real estate in Penticton please get in touch, so we can review your business goals for 2018 and start finding some potential spaces that fit with your objectives.
Get a feel for the Penticton commercial real estate market
Poking around the city and dreaming is great when you’re in the planning stages of buying commercial property. It doesn’t cost you anything and it will give you an idea of what commercial property is going for in your local market, so that you avoid potential sticker shock. It will also give you a great idea of what area you want to set up shop in. If you have a retail business then you might already be looking at downtown Penticton as a viable option. The main street has always been a popular spot for new businesses to get noticed. There are also new commercial complexes along the south main street that are great for high traffic retail spaces. If you’re looking for a winery or farm property then focusing your search in Naramata, Osoyoos or up in the area of Uplands/Redlands in Penticton would be a solid place to begin.
Talk to your accountant about buying commercial real estate in Penticton
Once you’ve started getting a feel for the local market, talking to your accountant or business advisor is the logical next step. You will want to sit down with an accountant who can explain the ins and outs of commercial real estate ownership. It’s not an overly complex process, but it is quite different than a residential purchase. Items that you will want to discuss in detail are how much your business can afford. Setting a budget early will help you and your commercial agent determine where to focus your search. You will also need to discuss how the deal is structured. Will the property be bought personally or will it go in the name of a corporation. There are also a number of tax and insurance implications that that you will need to consider as a commercial property owner, which your accountant will be able to explain in more detail. Speaking with your business team ahead of a purchase is always advised, so as to not find yourself in an unexpected financial pinch you weren’t prepared for.
Assemble your team of Penticton professionals
Choosing your professional team to help you find, finance and renovate your new Penticton real estate space is next. The first thing is lining up a local real estate agent that know the area, statistics and commercial market. Keep in mind that while many residential agents can handle a commercial transaction there is a knowledge gap that can only be filled by experience handling multiple commercial transactions across multiple industries. If you want to ensure that you are being represented properly we recommend working with a local agent who knows the area and trends. We also recommend that you plan ahead and find a builder/contractor who will be available to visit with you on site and provide rough estimates for your pending tenant improvements.
Arrange financing with your Penticton mortgage broker, or commercial bank
Another major key to securing business office space is arranging your financing ahead of time. You will need to find a business bank, traditional lender or mortgage broker to arrange commercial financing for you. This always takes more time than anyone expects, so arranging for your commercial financing ahead of any offers placed will greatly help you when it does come time to writing an offer. Getting financing approved on the commercial side can be tricky and will require your patience and typically requires a good set of three years financials minimum. Leave yourself enough time to shop your deal around. Your accountant should advise you on what to look for in a business financing package.
Plan ahead for your Penticton business
The fun part is always dreaming about what your new business space will look like when you’re finally open to accept your very first customer. Before you jump ahead in your dreams, you will want to ensure that you spend some time planning out your space. You will want to consider everything from how many staff your space needs to accommodate to where customer’s will access convenient parking. If you aren’t good with imagining spatial concepts then we suggest hiring a design expert who has experience in commercial design. Putting in the time to plan early on in the process of buying a commercial real estate property for sale put you ahead of the game when it comes time to move in.
Are you considering the purchase of a commercial property in the Penticton area in 2018? If you are, we would love to speak further with you to discuss where we can start looking for potential places to set up shop in Penticton.
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