Florida is a fast-moving market, and demand continues to skyrocket. This is equally true for residential and commercial properties. But as much as you may want to jump right in and move fast to keep pace, the success of your commercial investment relies on your due diligence and making sure you take the time upfront to set a strong foundation. 

Before making an offer on your next retail storefront or other commercial property in Miami, take these important pre-acquisition planning steps:

  • Define your goals – Before investing, consider the “why” behind your goals. Are you looking for steady cash flow, long-term appreciation or a bit of both? Will the property be owner-occupied, or is it an investment? Your answers will shape everything from financing to location and tenant expectations.
  • Set clear acquisition criteria – After understanding the “why” behind your goals, get specific about your “what.” Criteria like size, location, property type (retail, office, industrial, mixed-use), property condition, zoning, parking and tenant mix (if any) will help you narrow down your search.
  • Build your team – Engage a commercial real estate broker, attorney, lender (or mortgage broker) and CPA early in your search process. Each member of your acquisition team brings crucial insight that can save time, money and risk down the road. 
  • Secure financing pre-approval – Before you tour a single property, understand what you can afford and know your borrowing power. Having pre-approval makes you a more competitive buyer and helps you act fast when the right opportunity arises. Typical loans for commercial investments include SBA loans, conventional loans, cash deals, 1031 exchanges for tax-deferred reinvestment opportunities and others. 
  • Begin the property search – Your broker will help you tour properties, evaluate rents, operating income, cap rates and local market trends. Pro tip: Commercial real estate is less transparent than residential, so lean on your broker for off-market opportunities and comps.

In Step 2 of Buying a Commercial Property in Florida, we’ll dive into what you need to know about making an offer, negotiation and contracts. If you have questions about investing in commercial property in Florida, contact our experienced attorneys at the Law Offices of Alex D. Sirulnik, P.A. and ADS Title Services, Inc. Our legal team works closely with investors, business owners and brokers across Florida to navigate every stage of the transaction with clarity and confidence.