| The idea of purchasing a commercial property is | | | | want to know what the growth potential is and if |
| that it is well suited to the needs of your business. | | | | the commercial property will meet those needs. |
| This can and is defined by several factors and | | | | The commercial lender will not give you a |
| they will all be considered when you apply for | | | | commercial mortgage if the property is too big or |
| your mortgage. The commercial lender will look at | | | | not big enough to meet the expected needs of |
| your business and what it does and how it will | | | | the business. If the property does not have |
| relate to the commercial property in question. | | | | enough parking for peak customer traffic, it will |
| If your company makes widgets, the lender will | | | | mean you could loose business. |
| want to know how long you have been making | | | | The lender will want to know if there is enough |
| widgets. They will also want to know what your | | | | space for the number of employees required and |
| growth rate has been over the time you have | | | | if the kitchen is large enough to meet their needs. |
| been making widgets. They will look at the | | | | What is the maximum seating capacity of the |
| property to consider whether it will meet your | | | | building and how much will the average customer |
| needs for making widgets during the lifetime of | | | | have to purchase to make the payments. |
| the loan. | | | | There are many similar small things to consider |
| The lender will want to see that you will have | | | | when deciding if the commercial property being |
| room to grow and that you will grow to fill the | | | | looked at is a good deal for both you and the |
| space. They will also look at the location of the | | | | lender. The list of things that can make or break |
| property to see how that is going to work with | | | | a property deal is very long and it does change |
| your widget manufacturing needs. Do you have | | | | from business to business. |
| good access to roads that can handle the volume | | | | For example for some businesses, it may come |
| of traffic that will be generated? | | | | down to waste removal. If your business is |
| Will there be adequate parking available for staff | | | | involved in agriculture, it could come down to the |
| and customers? Does the location provide room | | | | smell. Is the location of your farm upwind or |
| for expansion if your growth rate is more then | | | | downwind from a population center? |
| expected or will you be moving in a couple of | | | | If you are upwind from a population center, there |
| years? What tax incentives are available on that | | | | could be some issues as locals oppose your being |
| property and how long will they be available for | | | | there. This could create a different kind of |
| that property? Are the tax incentives a one-time | | | | pressure on the lender that could make the |
| offer or are they able to be extended to make | | | | property less desirable for the commercial loan. |
| the property more appealing. | | | | An independent broker could help out with this |
| The things that will make a commercial property | | | | type of issue. |
| desirable will change depending on what your | | | | It does not make any difference what your |
| business is. If you want to open a pub, your | | | | business is, what will make all the difference is |
| needs will be very different from that of a | | | | what your business needs are and will the |
| factory. The lender will want to know that the | | | | commercial property meet those needs. The |
| property is in a good location to maximize the | | | | definition of a good commercial property is one |
| profitability of the pub. The property could be | | | | that will meet all your current and long-term plans. |
| located across the street from the factory we | | | | If it does, it will make it easier to get the |
| talked about in the previous example. | | | | commercial mortgage you are looking for. It will |
| The lender will again look at your past | | | | also help you to get better rates and conditions |
| performance in regard to operating pubs to make | | | | on your commercial financing. |
| sure that you know how to run a pub. They will | | | | |