Costs of Buying Commercial Property for Small Business Owners

real estate, commercial real estateThe dream of many small business owners is to one day own the building where they do business. Whether a stand-alone building or large office building, the idea of building equity into a piece of property, and possibly allowing others to pay your mortgage through leases, is appealing. But before you run headfirst into a commercial property deal, should one come available, here are some costs to consider.

Insurance – Insuring a commercial building properly can be expensive. Be sure you factor this in when determining your costs.

Debt – Probably your largest expense, your monthly obligation will be many multiples of what you pay for your lease. Be sure you can cover it if your tenants all leave.

Utilities – Usually, water and sewage are picked up by the owner of the property, and electricity is covered by the tenant. You will also be responsible for the utility costs …