After I decided to expand my personal antiques business, I discovered that commercial real estate differs greatly from what I was used to with residential real estate transactions. I have sold and bought a few houses in my life, but never made a purchase of commercial real estate. I had an agent that always helped me locate new property, but it turns out that he didn’t even handle commercial real estate, so I had to refer to the paper and the internet to find someone to look around for a place that would suit my needs.
I found an agent online who deals mostly in commercial real estate, and they were able to answer questions and explain the advantages and disadvantages of leasing versus buying commercial real estate. I had approached the matter with the expectation that I would have to purchase a building or a storefront to house my business, but the commercial real estate broker informed me that most stores are leased properties and that depending on many personal financial factors, leasing commercial real estate might make more fiscal sense.
I still have not decided on the direction I will go. I am not sure if the nature of my antiques business lends itself to a costly store purchase, but on the other hand, I do not relish the idea of a rental of commercial real estate that I will never own a stake in, or ever get anything back from my investment. I clearly need to put more thought into the matter and consider other factors before making such a long term and serious commitment. Hopefully, if all goes well and I choose wisely, this will be the last foray I have to make into the world of commercial real estate.