It’s great time to be an entrepreneur, but if you’re not going the digital, online, or stay-at-home route for business ownership, the location of your next storefront or warehouse is going to have a major impact on the success of your business. You will need to consider a wide variety of factors including taxes, building costs, advertising, and zoning issues. Here are a few tips that will help you find the perfect piece of land at the right price.
Determining Zoning Laws
One of the most complicated aspects of purchasing land for commercial use is figuring out the local zoning laws. Local zoning regulations determine exactly what can be done on a certain piece of property. You will most likely need to contact a local board and request a zoning map of the entire county. Zoning regulations can be updated, but changing those laws usually takes quite a bit of time and money.
Consider Your Future Growth
When purchasing land, you must strike the perfect balance between your current needs and future growth. Settling on a piece of property that is too small could end up costing you hundreds of thousands of dollars if you have to expand in a few years. You don’t want to buy land that is too big for your current operations either. The best way to get an idea of your future growth is to take a look at your company’s finances and growth over the last few years.
Site Prep and Constructions Expenses
No piece of property is going to being perfect, and you should plan on spending at least some money prepping the site. An experienced land development specialist should be able to give you a general idea of what the final costs will be for site prep and construction. No business owner wants to get a few months into construction only to realize that they didn’t properly budget.
Taxes and Other Ongoing Costs
In many areas, commercial property taxes can be quite hefty. Even if the area seems perfect for your company, the taxes could eventually put you in the red. Some of the other ongoing costs that you will need to consider include utilities, landscaping, and security. Building a company miles away from any existing infrastructure is much more expensive than most business owners realize.
You should work with a local real estate agent who knows the area if you want to finish this process as quickly as possible. Many realtors have pocket listings that can’t be found anywhere else, and snatching up one of those listings could save you tens of thousands of dollars in the coming years.