Purchasing an industrial property is very different from purchasing a residential property, and if your only experience with real estate has been either purchasing a home or renting a commercial building, you've got a learning curve to deal with. Part of purchasing this property involves making sure the land is safe for occupancy and that your plans are allowed by the local governments who run the region. Buying an industrial property does not have to be hard, but it will be harder if you aren't prepared for what you have to look for.
Prior Use and Soil Contamination
The previous uses of the land may have left contamination that you'd need to have cleaned up, or need to get the previous company to clean up. Normally, contaminated land really wouldn't be the best purchase unless your company specialized in cleaning up that very type of contamination. But with real estate prices the way they are, sometimes contaminated land is your only chance to actually buy something you can afford. You'll need to take the cost of cleanup into account, and you'll need to ensure the land is safe to dig in and build on before you begin work. If there is already a usable structure on the property, you'll have to have that inspected and fixed up. It sounds like a lot, but if you're aware of it ahead of time, you'll know what you're in for.
Government Grants for Purchase and Cleanup
You may be able to get government grants to help with the purchase, and the cleanup if one is necessary. These programs start and end randomly, so keep your eyes and ears open. Watch out for scams; anything legitimate regarding real estate grants should be on government websites. Check city and county websites in addition to state and federal sites. States, cities, and counties that are trying to attract businesses often have financial incentives that you can use to find industrial properties and get your business set up.
If there is a structure on the property, always have the building condition checked out before you buy. You may have to demolish the structure and build from the ground up if the current structure is too dangerous to occupy, or if it needs so much work that building a new one would be more cost-efficient. Don't ignore properties with dilapidated structures. Even if it's obvious that you'd have to tear it down, you could get a rather good price on the property because of all the work that would need to be done.
Available industrial properties can be found in every state, and if you have a company that wants to expand, start looking now. Good properties will go fast, and grant programs can end. You don't want to miss out.Share