For a limited time, BizSold has secured FREE attendance for you and your guest(s). 

📅 Date: Saturday, July 27th 2024

⌚ Time: 11:00 AM EST

📍 Where: Online (Live on Zoom)

Mark your calendar for Saturday, July 27th, at 11:00 AM EST. Canadian real estate guru Scott McGillivray will be LIVE to personally guide you through the world of real estate investing.

With over 20 years of real estate experience and a track record of success, Scott has transformed the lives of countless investors, guiding them toward financial prosperity and real estate mastery. 

This is a rare chance to have Scott as your personal trainer for 60 minutes. During this private session, Scott will reveal all of his secrets to finding and acquiring the best cash-flowing properties that have allowed him to build his portfolio of over 433 profitable income properties for his shows on HGTV.

We’re almost at capacity so make sure you register now to secure your spot!

Reserve your spot now and be part of this transformative real estate experience.   

PS: We have exclusive gifts prepared for registrants and attendees (it is something you won’t want to miss out on)!

The post Free Real Estate Webinar: “Hidden Markets Exposed” with Scott McGillivray appeared first on Business Exchange Blog.

Commercial Real Estate Can Be a Great Investment Opportunity. Here Are Some Tips That Can Help You Become Successful when Investing in Real Estate. 

Profitable Real Estate Properties

When it comes to Commercial Real Estate, the most profitable commercial real estate properties include multifamily projects, student housing, office spaces, self-storage facilities, and mixed-use buildings.

Location

It’s very important to consider the location of the area when buying commercial real estate since it plays into a lot of factors such as accessibility and the value of the property. The value of the property largely depends on the location of where the commercial real estate is.

 Bigger Units

Larger units can give an opportunity for your business to grow immensely. If your business doesn’t need the entire space, it can be rented out as an alternative income stream.

Return On Investment

When purchasing commercial real estate, make sure to take a look at the ROI (return on investment). Anything above 15% ROI is a great investment. 10% or more is considered a good ROI. ROI is critical for any purchase decision regarding commercial real estate.

Creating Investment Strategy

Create an investment strategy regarding your long and short-term investment goals. In the long run, this will be extremely beneficial for you as it can help you save taxes, help guide investors and present the future need for capital growth.

How To Buy Commercial Property Listings

Business Exchange has been helping Commercial Real Estate Brokers for over 20 years, helping them sell their listings. Find commercial properties for sale, commercial buildings, office space, and land for sale. All commercial property listings can be found on our website. You can also find commercial brokers and get in touch with them.

The post Tips For Success In Commercial Real Estate appeared first on Business Exchange Blog.

STEP #1 – Deciding to Sell Your Business

Making the decision to sell your business is the first step in a series of processes to close the deal. Although it may seem simple, remaining confident in your choice is very important and will help solidify your motivations for pursuing an exit strategy. The most common question prospective buyers ask is: Why are you selling your business?

Knowing the answers will give you determination and help you in dealing with inquiries from prospective buyers.

Avoiding Seller’s Remorse: What’s your Why?

Your “why” is what will motivate you to create a strong and determined exit strategy. When deciding to sell your business, weigh out the pros and cons of selling your business and seriously consider your reasons and motivations. Staying confident in your decision will help motivate you to plan and execute a purposeful exit strategy.

Common Reasons Why Business Owners Decide to Sell: 

• RETIREMENT: Leaving the workplace behind to have a comfortable retirement.
• NEW OPPORTUNITIES: Deciding to try a new business venture or change industries.
• PEAK OF PROFITABILITY: Selling due to an upcoming decline in business.
• HEALTH & STRESS: Facing health challenges or feeling burnt out from work.
• DIVERSIFYING: Looking to invest and expand business portfolio.

Motivations & Approaches

Once you have come to terms with your “why”, it is time to start considering your selling motivations. Ask yourself:

• Are you willing to still be involved with your business post-sale?
• Are you looking to leave immediately after the sale?
• Are you looking to secure the highest possible price?
• What compromises are you willing to make?

Think about the most agreeable terms and conditions that benefit yourself, when selling your business. All of these questions need to be factored in when considering who will be buying your business. Try to align your financial and personal motivations with who you are considering as a prospective buyer.

Prospective buyers include:

Existing partners

Competitors

Outside individuals

Family members

Employees

Buyer Benefits 

Existing Partner – immediate sale & payoff, immediate departure, little disruption to clients/staff, may require ongoing involvement

Individual – immediate sale & payoff, strong selling price, no ongoing involvement required

B2B – strong selling price, immediate payoff, sale terms may require ongoing involvement

Goals and Objectives for your Exit Strategy

Based on your motivations and sales approach, develop goal statements and objectives for your exit strategy. Questions to consider:

• What are my motivations for selling?
• Who am I willing to sell my business to?
• How long are you willing to wait for a sale?
• What are my post-sale objectives for me and my business?

Develop a Goal Statement Using the Following Formula

Financial Objectives + Ideal Buyer + Time Frame + Post-Sale Objectives = Exit Strategy Goals

For example, a goal statement and objective for an exit strategy can look like this:

“I intend to sell my business for the highest possible price to an individual that has the financial and managerial capability to run my business. I would like to sell my business immediately within 6 months and have no involvement post-sale. I prefer to sell my business to a buyer that will retain employees and make no significant alterations to the business model.”

Each goal statement will vary depending on what is important for your specific exit strategy. Compromises to your goals and objectives may occur along the way but this exercise helps to generate a guideline to clearly define what you are expecting in a business sale.

STEP #2 – Preparing to Sell Your Business

Assessing The Situation

Before listing your business for sale, conduct an assessment to identify the strengths and weaknesses of your business and strive to amend any weaknesses to make your business more attractive.

Create a list of legal, financial and operational conditions. From there, assess the quality of these conditions and see where your business needs improvement.

A well-rounded business is more likely to be successful in attracting prospective buyers. Refer to the table below for your business assessment checklist:

Execute an Improvement Plan

Based on your business assessment, create and execute an improvement plan that will strengthen your business before sale.Consider the necessary steps required to improve your business and set a timeline for these improvements and invest in the resources.

Depending on the size of your business, on average it takes about 3 – 12 months to sell a business. This process includes preparing documentation, marketing your business, finding the right buyer and closing the sale.

Take time to improve your business because buyers will be assessing it from various perspectives such as legal, financial and operational. By executing an improvement plan you will create a strong vantage point for your negotiations.

As you strengthen your business for presentation to buyers, it is advised to keep your sale plans as quiet as possible. You should only share your sale intentions with staff members and consultants when necessary and should be followed with a non-disclosure agreement.

The reason why you want to keep your sale intentions quiet is because you risk creating uncertainty within the business, employees, clients, suppliers, etc. This uncertainty can devalue your business, while you try to improve and increase its worth.

Tips for an Effective Improvement Plan

Grow Your Profits
If you are planning on selling your business, it is wise to grow your profits as much as possible because your business worth is a multiple of its profit. Small businesses average about 2-3 times profit. Medium businesses are 3-5 times profit and large businesses can expect up to 5-10 times profit. The higher your profits, the more your is business worth.
Collect Your Documentation
Non-disclosure agreements, business plans, marketing plans, revenue/profit projections, financial statements (past 2-3 years), tax returns, leases, loan agreements, inventory, client contracts, insurance policies, product/service prices etc that are relevant to your business. Prospective buyers and advisors will be looking for this kind of information, so while you are executing your improvement plan, start collecting these documents to help prepare you for the sale.
Time is Money
Consider the amount of effort it takes to operate your business and also go through the business sale process. Are you prepared to continue operating, while actively looking to sell? Depending on your exit strategy goals, consider getting help from advisors.

Getting an Appraisal

After implementing an improvement plan, you will then want to determine the value of your business to make sure you don’t price it too high or too low. Find a business appraiser to provide a valuation of your business. You can get a professional valuation from local accounting firms, investment banking firms and business brokers.

Appraisers require formal documentation for the past 3-5 years such as: Business Plans, Tax Returns, Financial Projections, Legal Documents, Leases, Assets, Contracts, Agreements, Income Statements, etc. For best practice, make sure that the appraiser performing your valuation has access to the most current data regarding business transactions in your industry.

Finding the Right Advisors

When preparing your business for sale, it is important to assemble a strong team of advisors to help you navigate the sale process.

Advisors for selling a business include: business appraisers, accountants, lawyers, consultants and business brokers.

Every business sale requires a team of advisors, however the team members depend on the complexity of your business, your abilities and experience, as well as the amount of energy you are willing to devote to the sale process.

• BUSINESS APPRAISERS – Provides business valuation and determines reasonable selling prices.
• LAWYERS – Provides legal assistance during negotiations & necessary paperwork for the close.
• ACCOUNTANTS – Prepares financial documents necessary for business appraisals and prospective buyers.
• BUSINESS BROKERS – Assists in all stages of the purchase and sale of your business.

As a private seller, you would be responsible for all facets of the business selling process. Your team of advisors would consist of accountants, business appraisers and lawyers.

Selling your business privately allows you to save money. But operating a business and the selling process is a huge endeavor that requires a lot of time and energy.

Consider working with an experienced business broker because they manage the selling process and can connect you with existing potential buyers.

Advantages of Using a Business Broker

Industry Knowledge
Choose a broker that has experience in selling businesses in your industry. Every industry has a unique selling process, and by leveraging an experienced business broker you will accelerate the selling process. For instance, a business broker that sells dry cleaning businesses, may not know how to sell a restaurant with liquor licensing.
Marketing
Experienced business brokers have the knowledge in advertising and marketing your specific kind of business. Brokers can leverage different marketing channels that will yield the optimal volume of prospective buyers for you. Professional brokers should be able to advertise your business effectively and screen out the buyers for the business owner.
Time
There are many advisors involved in selling a business. Business brokers can save you time by coordinating with all the respective parties. They have experience dealing with appraisers, lawyers, accountants and buyers. While they take care of the business selling process, you can focus on improving your business to get the highest valuation possible.
Negotiation Power
Brokers are skilled negotiators educated on negotiating prices, terms, conditions and other aspects of the sale. Their job is to bring buyers, sellers and possible third parties, like landlords, together by mediating the transaction.
Protection
Business brokers are trained in legislation and the necessary paperwork in selling a business. Brokers will request the disclosure of a prospective buyer’s finances. This helps protect the seller by reducing the risk of prospective buyers defaulting on their finances. An experienced business broker will qualify the right buyers, which significantly reduces the chances of a business dealing falling apart.
Closing Fee
Business brokers charge a percentage of the sales price. This is called a success fee, which is based on a percentage of the closing price for your business sale. Although you have to pay the broker a commission, this is an incentive for them to sell your business as quickly and for the highest price possible.

Selling a Franchise

Due to the corporate system of a franchise, you have to go through the franchisor in order to sell your franchise business. Approach your franchisor and notify them of your intent to sell. Franchisors are accustomed to their franchisees exiting at some point.

Find out what assistance they can provide in the selling process, and if they are able to help you with a resale or transfer. The process varies significantly depending on what kind of franchise you own.

What are the Transfer Fees?

Check your franchise agreement for transfer fees. Some franchisors do not charge a transfer fee; others may charge transfer fees between $1,000 and $30,000.

What qualifications do Buyers Need?

Your franchisor must approve the buyer before you can sell your business. Qualifications usually relate to credit score, net worth and/or experience.

Rules of Thumb for Valuing a Franchise

Franchises normally share the basic rules of thumb in determining the sales price — i.e., what multiples of your gross revenue or cash flow you may be able sell your franchise for.

Will the Head Office Help Me Sell

Some Franchisors will take over the entire process and other franchisors do not want any involvement with the resale other than to approve the new franchisee. 

STEP #3 – Marketing Your Business for Sale

Confidentiality

In the business selling process, confidentiality is generally needed in order to reach your exit strategy goals. Giving away too much information can be detrimental in a number of ways:

Customers, suppliers and employees may become hesitant when a business is for sale. This can disrupt your current operations and therefore weaken your business valuation.

Prospective buyers may become hesitant about purchasing a business if they feel that too much sensitive information has been divulged to others.

Marketing with Confidentiality

Consider advertising by using blind ads and listings. Don’t share your business name until you’ve qualified prospective buyers and obtained their confidentiality agreements.

For example: PROFITABLE CONVENIENCE STORE FOR SALE GREAT LOCATION & ESTABLISHED CLIENTÈLE

Qualified buyers expect to be screened thoroughly before having sensitive information shared with them. Qualified buyers want to know that the business they are buying is carefully protected in terms of sensitive information.

Keep the conversation going and have patience through the business selling process. There may be a lot of back and forth with your prospective buyer, but make sure to release sensitive information only when you deem fit.

Give allowance for buyers to do their due diligence, as it can take them on average 30 – 90 days before making an offer. Continue exploring different prospects and always follow up.

STEP #4 – Negotiating with Buyers

Buyers want to acquire companies at the lowest possible price with the most favorable terms, while business owners aim to reap the rewards by maximizing the price and arranging for optimal seller terms. Despite the tension of these opposing goals, buyers and sellers share the same goal: to close the deal.

Tips on Negotiating with Buyers

• Request a Letter of Intent

Include a proposed purchase price, terms, conditions and warranties. This establishes a general framework for your negotiations on a final sale agreement.

• Consult with your Sale Advisors

Consult with your legal and accounting advisors to ensure that the sales agreement offers you the greatest financial benefit at the lowest tax liability.

• Never Settle for Just One Buyer

It is good to have a couple of prospective buyers so that you can start a bidding war, or just in case one of them falters.

• Have a Walk-Away Number ­­

This is the lowest amount you are willing to sell for. Crunch the numbers and do not be afraid to walk away if the buyer offers less. Sticking to your walk-away number can ensure that you are comfortable with the final deal.

• Cooperate with Due Diligence

Keep in contact with your buyer and create a plan for the due diligence process. Identify qualifying steps where sensitive information should become available.

• Ask Questions of Your Buyer ­­­

As a seller, do your due diligence and ask questions about their financial situation.

• Prepare Agreements in Writing

Potential buyers should sign a nondisclosure agreement to protect your business information.

STEP# 5 – Closing The Sale

After closing the sale, there is a transition period which typically involves a period of cooperation where the seller assists the buyer in transitioning the business. This typically includes introducing new owner to key clients, transitioning the financing and accounting, and answering questions on how to operate the business optimally.

About The Business Exchange

Established in 1998, The Business Exchange has over 20 years of experience specializing in lead generation in the franchise and business opportunity industry, in print and online.

We are a full-service advertising agency that connects business sellers to prospective buyers. Call us today at 1-877-337-1188 to learn more about our Businesses for Sale listings and Request a Quote!

The post How to Get The Most Money for Your Business appeared first on Business Exchange Blog.

TORONTO, July 27, 2020 – Cushman & Wakefield Asset Services has announced a new partnership with Canadian retail platform, GetintheLoop, to support its retailers and customers. The app service is scheduled to launch summer of 2020 at 21 retail centres across Canada.

Through this partnership, more than 1,500 retailers in Cushman & Wakefield properties will receive access to GetintheLoop’s mobile marketing platform to better reach local residents via their smartphones, email, and web. GetintheLoop will act as a single source for accurate and relevant local retail information, integrating data from the app onto each centre’s website, and app users will have the added benefit of receiving push notifications including dynamic offers such as gift card programs, delivery or curbside pickup options, incentives and offers to support retail businesses now, when they need it most.

“When our guests install the GetintheLoop app on their devices, they will essentially have their local mall in their pockets,” said Molly Westbrook, Cushman & Wakefield’s Executive Managing Director for Canada. “Retail operations and consumer habits are rapidly evolving, and we want to support our retailer partners in this evolution, extending beyond the physical space of our centres. Partnering with GetintheLoop allows us to enhance the guest experience, giving them a direct line on new arrivals, local promotions and sales, and much more.”

Consumers can download GetintheLoop for free in the App Store and Google Play store and opt-in to receive curated, local offers. Push notifications can be enabled or modified so consumers can receive timely updates from their local Cushman & Wakefield-managed shopping centre.

“We’re thrilled to partner with an innovative, community-minded organization like Cushman & Wakefield,” said GetintheLoop’s Founder and CEO, Matt Crowell. “We want our technology to help communities stay connected and support local retail during this critical time.”

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with
approximately 51,000 employees in 400 offices and 70 countries. In 2018, the firm had revenue of $8.2 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.

About GetintheLoop

GetintheLoop is Canada’s leading mobile offers platform in more than 70 markets across Canada, providing local businesses with a simple-to-use mobile platform to reach interested and active consumers on their smartphone. Users simply download the free app and opt-in to receive curated, local offers and experiences from top brands and local businesses including retail, restaurants, spas and salons and service providers. GetintheLoop has adapted their platform during this unprecedented time to provide local businesses with a real-time ability to promote their businesses’ evolving products and services to local residents who are safely social distancing.

The post Cushman & Wakefield Partners with GetintheLoop Retail App to Enhance Customer Experience appeared first on Business Exchange Blog.

Here are seven questions that you must ask before hiring a commercial real estate broker that has your best interest at heart, not just one that is focused on their commissions.

What is the most recent deal they are proud of closing?

Open up with an easy question, but one that will require some substance for the real estate professional to talk about. This gives you some insight into how they structure deals and the level of negotiating they are willing to partake in.

You want someone who will fight in your corner, not take the easy way out. Some of the best agents out there can work magic on things you may not even realize were possible.

Are there any potential conflicts of interest?

You wouldn’t be asking them outright, but more of a question to see if there are any other clients who are looking in the same commercial real estate market, to the tune of competing for the same property type.

A competent real estate broker would know this almost immediately, but it’s good to be clear that there aren’t any conflicts of interest that can interfere with your deal.

How many clients do they currently represent?

You want a commercial broker who doesn’t have a problem finding work, but you also don’t want to be sitting at the bottom of a very long list of clients. Generally, you want to avoid someone who is desperate for work, so if they do appear busy, ask them about their schedule.

Do they outsource any parts of the job?

Don’t expect every commercial real estate broker to be the negotiator, marketer, and the background-checker for all of their deals. In fact, the most successful ones will have a marketing partner or allow the firm to do it for them, it’s very time-consuming. 

It’s good to know what aspects of their job are handled personally to avoid feeling distant.

Is there a fee, if yes, is it negotiable?

Firstly, you’ll want to know what, if any, fees will apply to you as some brokers charge a fee to the buyers whereas most of the commercial real estate brokers offer their services for free to the buyers/ tenants as they get their commission from the sellers.

In case any fees apply to you ask what the commission rate is and be sure that you believe it is fair and standard in the market.

Negotiate with the broker while comparing his brokerage with competition in the market. Beware, that lowest commissions don’t necessarily have the best outcome.

What is a realistic scenario?

Can they give you an estimate on where and what you might possibly be able to afford? If the agent is confident in their own negotiating skills, they should be able to give you some kind of prediction of what they might be able to land.

This is a good question to ask if you’re interviewing multiple brokers over the phone.

Any additional business experience that might help?

Having a well-rounded commercial real estate broker certainly helps when negotiating deals in the business world. Look for a broker that will try hard to meet deadlines and financial goalposts that are crucial to the success of your business.

Commercial real estate should never be approached the same way as residential real estate for sale, as it is a more complicated deal to structure. So if they primarily do residential then it’s best to move on to the next applicant.

It’s also a good idea to find real estate professionals who are members of crea. This helps to validate the skills of the potential broker.

How to Find Commercial Real Estate Listings

Business Exchange has been helping Commercial Real Estate Brokers sell their listings for over 20 years. Find commercial properties for sale, commercial buildings, office spaces, land for sale. All commercial real estate listings are for sale and for lease. You can also search for Commercial Brokers and get in contact with them directly!

The post Hiring a Commercial Real Estate Broker? 7 Questions to Ask appeared first on Business Exchange Blog.

A secondary advantage is having access to massive space that can be renovated to any type of commercial building and leased out to tenants. First, you need to make an informed decision about which property for sale or lease is right for you.

Step 1: Decide if Buying an Apartment Building is the Right Investment

Before investing in apartment buildings for sale or any type of commercial property for sale, you want to make sure it’s the right investment move for you. Due to the amount of land and space you will have, it’s best to do your research to weigh the pros and cons. Although you will receive more funds in return, you will also have lots of expenses to pay off.

This can be translated to any type of commercial real estate including hotels and motels, office buildings, retail buildings and even homes for sale.

Step 2: Different Types of Apartment Buildings to Buy

Once you made the decision of buying an apartment, the next step is to consider the types of buildings you want to purchase. This involves examining your ambition and risk level. Another deciding factor in choosing what type and class the apartment building is.

There are 4 classes A to D of apartment buildings for sale in the U.S.

• A: New rentals less than 10 years old, typically take the form of a garden, mid-rise or high-rise buildings.
• B: Up to 20 years old but are well-constructed and maintained.
• C: Up to three decades old, with limited or no amenities.
• D: Over 30 years old and usually in lower socioeconomic areas, often with subsidized housing.

Needless to say the older the apartment building, the cheaper it is to buy. However, there are usually more repair and renovation costs involved.

Step 3: Find Listings for Apartment Buildings for Sale

There are many ways to locate apartment buildings for sale. You can find them online by doing a web search, or you can enlist the services of real estate professionals and commercial brokers. The Business Exchange is one of the most resourceful online marketplaces and listing services for apartment buildings for sale.

Step 4: Evaluate the Potential Apartment Complex and Neighborhood

When you’re searching for an apartment building for sale, you want to assess the location, consider the number and size of the units, see how nice the amenities are, and pay attention to construction details.

This is to make sure you are aware of any issues and can address them immediately. It’s important to gauge whether this newly purchased complex will help you generate enough ROI to make your investment profitable.

Step 5: Make an Offer on the Apartment Buildings for Sale

Making a good offer on a commercial property involves appraising the value of the building via three different methods.

Market Value Approach: Appraising market value will look at similar properties and their prices. For example, if you are considering buying a six-unit building, the appraiser will look at similar listings in the past year that have been sold.

Replacement Cost Approach: Replacement cost examines the amount it would cost, on a square foot basis to build a similar building. For example, if a six-unit building with 4,000 square feet costs $100 per square feet, then the replacement cost will be valued at $400

Income approach: This approach uses the net operating income and local capitalization rates to determine the value of the investment.

Step 6: Finance the Purchase and Close the Deal

Successful funding is required when buying an apartment building. The buyer needs to understand the differences between recourse and non-recourse loans, as well as lender required reserves. Finally, make sure you have read, understood and agree to the terms on the loan.

Differences between Commercial Property Loans

Recourse Loans: Loans that are offered when the buyer goes default on their payments and can seek financial remedies beyond the building itself

Non-Recourse Loans: Loans that are offered where the buyer can go after the building and not anything else. These loans are harder to get.

Lender required reserves: lenders will require the buyer to maintain one or both of two types of reserves. The first is interest reserves, which will ensure the buyer pays on time, the other is cash reserves to ensure the buyer meets operating expenses, insurance, taxes, and repairs.

Pros of Buying an Apartment Complex for Sale

Here are some of the Pros of buying an apartment complex for sale:

• Recurring income from renting out an apartment complex
• You will always have a residual income even if one tenant moves out, there will still be other tenants to pay you rent
• Lower maintenance fees
• Financing is based on the financial performance of the building rather than the buyer’s financial performance

Cons of Buying an Apartment Complex for Sale

Here are the cons of buying an apartment complex for sale:

• Involves careful building management
• Dealing with bad behaviour tenants
• High maintenance costs
• High tenant turnover rate

About The Business Exchange

Established in 1998, The Business Exchange specializes in lead generation in the franchise and business opportunity industry, in print and online. Call us today at 1-877-337-1188 to learn more about our Apartment Buildings for Sale opportunities and Request a Quote!

The post Buying an Apartment Building for Sale – A Step by Step Guide appeared first on Business Exchange Blog.

Typical Questions to Consider:

First, you should ask yourself the following questions when you’re wondering how to choose a commercial property for sale:

• Can customers access your location easily?
• Is the location you want to invest in, close to malls and heavily trafficked areas? Are there any competitions?
• What type of real estate for sale are you thinking of? What is your budget?
• Does the facility you’re eyeing provide adequate services?
• Is the area safe so customers and employees feel comfortable?

What You Need to do to Choose a Commercial Property for Sale

Now that you know the types of questions you should be asking, let’s take a look at the steps you need to take, to ensure your investment will be beneficial to your business plan and goals. 

1) Choose a Commercial Building & Location That Satisfy your Business Needs

Essentially, the property type you should purchase depends on the type of business you want to operate, for example, if you want to open a retail business, the obvious choice would be a location with lots of foot traffic and at busy intersections.

For example, if you’re looking for an office space to lease, a location with a pleasant corporate setting would be beneficial.

Pick a place where it is accessible to public transportation, restaurants for lunch breaks, and a common populace where people get to network and socialize. The Business Exchange has many commercial properties for sale to search from.

2) Does Building Need Renovations?

Now that you’ve picked the ideal location for the type of business you have, you need to see if this building will require more renovations or costs that will come out of your budget.

There are two scenarios: If you decide to rent, and the retail spaces need modifications, you can negotiate these terms with the landlord. As long as you detail and clearly state the types of renovations you want to do, you should be good.

If you’re buying the property, make sure you employ an accredited inspection company to evaluate the premise and look for any defects related to safety, environmental risks…etc.

3) Examine Local Taxes & Utility Costs

Taxes and utility costs vary between different cities. Some cities cost more, some less. Make sure you consult professional help like your Canadian real estate broker and get their advice on these costs.

4) Plan Room for Growth

It’s important to plan your future if your company is going to grow incrementally because you want to allocate extra space for it to grow.

On the other hand, if you don’t plan on growing anytime soon, there is no need in paying extra for space when you don’t need it.

What are the Pros and Cons of Choosing a Commercial Property for Sale?

Pros

• Paying a Mortgage is better than Paying Rent
• Lease payments will continue until your lease agreement is finished. Making payments towards a mortgage will eventually pay off your mortgage.
• Your Property Value will Increase over Time
• Over time, the value of your commercial property wills double or even triple in value. This increase in value along with the business you operate in your commercial property will provide you with more equity in your property.
• Therefore, when you want to sell your business and/or property, you can ask for a competitive price because your property has gained value, and so has your business.
• You are your own Boss
• When you actually own your property you don’t have to deal with a landlord or property manager.

Cons

• Competition on Prime Location
• A lot of the prime locations may not be available for sale. So you might end up with a location that is not your first choice.
• Unable to Purchase Current Property
• You are currently occupying a commercial space with repeat customers, leasehold improvements, and consistent maintenance, but now you want to own this property, you may not be able to purchase it.
• The current owner may not be ready to sell this valuable property because it makes money, so when the time comes for you to purchase our own property, you will have to find another location.
• Fewer Resources to Rely On
• When you are renting, you can rely on your landlord or owner to remediate maintenance and property issues, which would ease up time for you to focus on your business.
• On the other hand, owning your commercial property and running your business at the same time, you will not only be responsible for operating your business but also looking after issues related to the property.
• Lastly, many commercial real estate owners do not like to run their businesses in the same property, they prefer to lease their property to other business owners because they can make a profit out of the lease.

About The Business Exchange

Established in 1998, The Business Exchange specializes in lead generation in the franchise and business opportunity industry, in print and online. Call us today at 1-877-337-1188 to learn more about our Commercial Real Estate listings and Request a Quote! Identify real estate professionals by going on our Find a Broker page: https://thebizex.com/business-brokers to partner with the best brokers in Ontario for your next big purchase.

The post How to Choose a Commercial Property for Sale that Fits your Business Goals appeared first on Business Exchange Blog.