Location may be one of the most important factors when starting or opening up another site. Followed by leasing options or, if there is a building for sale in the area, buying the office building entirely. Here are the benefits and negatives of buying versus leasing an office building.

As a buyer of commercial properties, you should accomplish two types of due diligence before moving forward with the acquisition. These types of due diligence will protect you against incurring liabilities, and you will be made aware of precisely what you are purchasing. It also gives you a more straightforward overview of what you can negotiate and the terms you could offer. The two types are physical due diligence and financial and operational due diligence.

Barriers to entry are restrictions that prevent new competitors from quickly entering an area of business or industry. These include regulatory clearances, securing licenses, tax benefits, and customer loyalty.

CAM stands for Common Area Maintenance, and they are fees that are paid by tenants to maintain the areas, both in housing developments or commercial complex, such as the following:

Commercial lenders include commercial banks, private lending institutions, hard money lenders, financial groups, and mutual companies. They are mostly used for commercial real estate acquisitions, short-term fundings or businesses that need resources to address seasonal orders or cater to sudden demand.