Things to Know Before Buying Commercial Real Estate in Orange County, California

Are you going into business for yourself? Browsing for the perfect property to put your bookstore business? You should read further to learn more about the ins and outs of commercial real estate. By exploring the various types of commercial real estate, you can also figure out where your new business fits. However, buying commercial real estate isn’t as simple as having the money and exchanging it for ownership. Read on to understand some essential things purchasing a commercial real estate property entails. It could save you a headache later!

What is Commercial Real Estate?

Some of you might need to learn what commercial real estate is. Most people only think about houses and condos as real estate properties. However, as stated by Investopedia, commercial real estates belong to businesses. If you live in Orange County, consider browsing the Commercial Orange County real estate listings. There could be a great piece of property for your business in there!

Some businesses aren’t able to afford to buy commercial real estate properties. Therefore, a lease enables smaller firms to use the feature for offices or workspaces. 

7 Types of Commercial Real Estate

You would think commercial real estate would make you feel it’s just business real estate. However, it can be a little more complicated regarding what all commercial real estate property entails. According to Property Metrics, there are 7 different types of commercial real estate properties. 

Office

Most of these office buildings are located in the middle of cities. You may recognize these as the tall office buildings in your local towns. They also have offices outside cities, which aren’t as tall as the one's downtown. These could be as big as 80,000 - 400,000 square feet.

Industrial

These usually have warehouses with heavy machinery for various industrial uses. However, some properties include office space. The office space is for the administration and management to keep the business running smoothly.

Retail

Retail buildings contain a variety of structures because some are small enough for fast-food restaurants. Other retail buildings, such as Walmart and other department stores, are much more significant. Property Metrics reports that some large regional malls could be as big as 400,000 - 2,000,000 square feet. 

Multifamily

You can find 3 types of apartment buildings in the multifamily category. According to Property Metrics, multifamily can be small apartments with 4-5 stories. They could also be medium-sized apartments with 5-9 levels and even much larger apartment buildings. 

Hotels

The hotel businesses include small, medium, and broad types of hotels. Some are big enough for restaurants, while others are built for lengthy stays. 

Land

The land doesn’t have any kind of buildings built on the property. In other cases, the nation has been vacant for an extended period. 

Special-purpose

Special-purpose is a type of commercial real estate that consists of businesses that are different from the other six categories. These businesses vary from amusement parks to nursing homes and much more! They don’t fall under the other classes, so they’re lumped together in this special-purpose group!

Knowing what type of commercial real estate property it falls under could speed up your search process if you are about to build your own bookstore business. 

What Do You Need Before Buying Commercial Real Estate? 

Purchasing commercial real estate property isn’t as simple as buying a house or condo. It can be a long process of hiring specialists needed to obtain such a large park. As 42floors states, before purchasing a commercial real estate property, check to help me get out of my timeshare; you should be sure to have the following:

• Accountant
• Commercial real estate lawyer
• Commercial realtor
• Mortgage broker

These are just a few essential people that you must be prepared for purchasing commercial real estate.

Before getting commercial bridge loans or short-term or interim financing, terms are usually on the shorter side—between a few months and a year. Collateral is typically used to secure these loans—most often, the real estate you're purchasing or renovating will serve as collateral on loan. 

Accountant

Having a hired accountant can make a difference between buying a successful commercial real estate property and the financial downfall that could happen in the future. An accountant can help you examine your financial options and help with the financial business plan. Without a financial expert, you could lose all your money if you don’t account for all the extra expenses a business can have. 

Commercial Real Estate Lawyer

You wouldn’t think hiring a lawyer to purchase a commercial real estate property is essential, but it is. Your lawyer should review your contract to ensure everything is as you agreed upon. They can also help with understanding such a complicated deal. In addition to helping you understand the aspects of the deal better, it is also a good idea to get a state-specific rental agreement written by a local lawyer to use when renting out your new commercial building to other businesses. Laws surrounding commercial rental agreements can vary greatly depending on the state, city, and even the county you live in. For example, if you live in California, it would be wise to have a lawyer write you a California rental agreement form.

According to 42floors, it’s very crucial that you have a letter of intent, also known as LOI. This is further protection for you in case something goes wrong later on. Having an LOI signed will make the contract voided if there are any complications.

Commercial Real Estate Broker

Is it necessary to hire a commercial real estate broker? Yes, absolutely! You want to find the best properties to look at and find the best deals. Don’t waste your time and money searching when a commercial broker can find the perfect property. As Madison Square Portfolio states, commercial brokers can help you see features that aren’t even listed.

Commercial brokers also have a long list of contacts. You can use them for designing and building your new business. Knowing the right connections for interior design or movers can help you save money and time with trusted people. Commercial real estate brokers can also save you money. They are fantastic and experienced negotiators. Save your money and time with a commercial real estate broker!

If you ever find yourself in Orange County, California, consider Commercial Orange County real estate properties for your business. When searching for the perfect property, research the best commercial real estate lawyer for you. A skilled lawyer who knows how to read contracts can be essential in getting the right deal. You must find a great commercial real estate broker today to search for your dream property! It’s all about your connections!