Considering Construction on an Old Commercial Property? Jonathan Rooks Shares What You Need To Know
Purchasing an old commercial property with the goal of renovating the area and turning it into a money-maker can be a smart move–if you do it right. Here, Jonathan Rooks shares everything you need to know about deciding whether renovating an old commercial property is the right business move for you.
Talk with a Contractor
Unless you’re planning on completing the renovations yourself, it’s smart to chat with potential contractors before you move forward with the purchase of an old commercial property. Failure to do so can make it hard to get a solid estimate on how much you’ll need to spend to get the property into working order, according to Jonathan Rooks. You can also use this time as an opportunity to learn more about available contractors in your area and find the person who will be the right fit for the job if you decide to move forward.
When you look at your potential property, think about whether it would be suitable for several types of businesses. For example, a space with several small offices could work for a mortgage lending company or for a massage company. When you choose a property that has flexibility, you’re opening yourself up to a greater pool of tenants than if you choose a property that’s better suited for just one type of business, according to Jonathan Rooks.
Research the History of the Property
It’s important that you learn why the property is vacant. Perhaps the area does not get enough foot traffic for stop-in businesses (like restaurants), or perhaps there have been issues within the building (like noisy neighbors) that have made it hard for businesses to thrive. When you learn more about why owners in the past have failed, you can decide whether you have what it takes to create a successful space for businesses.
Take Your Time
We know–it can feel like you’re going to miss out if you don’t jump at the first opportunity that comes your way when it comes to buying commercial real estate. In today’s economy, businesses are unfortunately turning over quickly. This means that it’s a good time for you to take a step back and wait for the right commercial property for you, according to Jonathan Rooks.