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Wisconsin is a state of diverse landscapes. To the south, there are countless acres of gorgeous farmlands and commercial property for industrial ventures. In the northern part of the state, stately forests dominate the terrain, making it an ideal spot for lumber and paper mills or eco-tourism destinations. Vibrant cities such as Milwaukee, Racine, Madison and Green Bay offer thriving cultural and economic opportunities. Other major metropolitan areas such as Chicago, Des Moines and Indianapolis are all easily accessible from Wisconsin. Bordering on the great lakes, Wisconsin provides easy access to thoroughfares of modern transportation. Not to mention, Wisconsin is a beautiful state that is a very desirable place for your prospective employees to live and work. In short, if you have ever considered opening a business, or expanding an already existing business, Wisconsin may be the ideal location for you!
Today, the market for commercial real estate is booming in The Badger State. Whether you are insurance agent looking to establish a small office; a wine-maker thinking about starting your own vineyard, restaurant and bed and breakfast; or an international business looking to build a new factory or distribution facility, you should definitely take a look at all Wisconsin has to offer. While commercial real estate may be the perfect solution for you, it can also be a daunting, risky business. If you make sure that you do all of your homework and are diligent about your venture, you can help reduce these risks for your business moving forward. Take a look at the following steps for some of the many valuable things to think about as you venture into the world of commercial real estate here in Wisconsin:
1. Analyze Your Options
Buying commercial property is certainly not your only option. There are opportunities to lease pre-existing property and facilities throughout the state of Wisconsin. Before you decide to go with leasing or buying, it is important to sit down with professionals to analyze the variety of options.
There are definite advantages to leasing property instead of buying. Specifically, leasing property can help you mitigate the risks associated with falling property values. It can also help protect you if your business does not prove to be as profitable as you might hope. For example, if you buy property and your business fails, you may be left with a parcel of land you need to sell or auction quickly. If the market is in a slump, unloading the property quickly may prove difficult. Also, neighborhoods come and go. What might be an attractive area today may not be so attractive tomorrow, leading to decreased value of the land itself. With leasing, you don't have to worry so much about shifting neighborhood desirability. Furthermore, when you buy commercial land, this can tie up a good portion of your business's cash reserves, leaving a lower amount to address unforeseen expenses that may come down the road. While it may be easy to sell a parcel of commercial real estate in booming economic times, it may be difficult to get your money back out of the property if real estate is not selling as quickly in the future.
Buying, on the other hand, can help protect you against future rent increases. It can also be a sound investment in the event that property values continue to increase. Many times, the value of commercial land appreciates, creating a greater return for your company when you decide to sell. Sitting down with a business evaluation expert, a commercial real estate expert and a tax accountant can help you analyze the positive and negative aspects of buying vs. leasing commercial real estate. These individuals can help you analyze the current real estate market while simultaneously examining the future prospects for your company's revenue. There may also be tax benefits associated with buying property, so be sure to discuss these with your accountant and/or tax expert. If your business does not use the whole of the property, you may also be able to generate extra revenue by leasing a portion of the property out to a tenant. If you decide to go this direction, it is important to realize that this may not be the most secure form of cash flow as tenants may breach the lease agreement and fail to pay you rent as agreed upon. Buying also allows you the option of building your business facility from the ground up so that you can be sure the facility will meet all of your business's needs.
2. Consult Your Team
If you are looking at venturing into the world of commercial real estate, having a team of knowledgeable advisors may be the single most important key to your success. Yes, trusted advice may be expensive; however, chances are it will save you a headache or two in the future. Business and tax accountants can advise you how to best structure your real estate venture. Lawyers can provide you with sound contracts and documents to protect your interests. Commercial real estate experts can help you to identify and secure the perfect piece of commercial land for your project. A lending agent at a bank can help provide you with the best financing options for your particular situation. If you intend to build your business facility, make sure that you consult with reputable, well-known contractors. No one can be an expert in everything. Having these individuals to advise and assist you along the way will help give you peace of mind that your transaction is the right one for you and your business.
3. Find your property
As previously mentioned, a commercial real estate expert can help you identify the perfect parcel for your business operations. Providing advice on everything from the topography of the land to the zoning restrictions affecting a particular property, your commercial land representative will be one of your key advisors through this process. Make sure you and your expert carefully analyze the location of prospective property. Does it provide you with the access you need to your customers, and vice versa? Does the terrain of the property meet your needs for building? Does the property provide access to government infrastructure such as roads, water lines, sewers and electric lines? Are there environmental regulations you need to comply with affecting the parcel of property? What sort of re-sale value might you anticipate for the property if your business venture there does not succeed as well as you predict? Are there portions of the property you might look into leasing to tenants in the future? These are but a few of the important considerations you should take a look at when embarking on such a project.
As you decide to invest in Wisconsin commercial land, there are a myriad of considerations to be made. This article merely provides an overview of some of these considerations and should not be substituted for obtaining the advice of trusted professionals in your target market. Employing such trusted professionals will be critical to your business's future success in commercial land. If you are ready to begin the process of investing in commercial land in Wisconsin, contact one of the agents of LandBin.com to help you on your journey.
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