3 Things to Know Before You Buy a Commercial BuildingOwning commercial real estate is very different from owning residential real estate. Once you own a commercial building, you may need to get the building re-zoned for different uses or upgrade the building for new tenants. In addition, residential tenants are happy to sign up for a one year lease. As a general rule, business leases need to run longer.

3 Things to Know Before You Buy a Commercial Building

The most important things to know include:

  • Try to inherit a tenant
  • Consider a partnership with a new tenant
  • Work with a flexible lender

#1. Try to Inherit a Tenant

When you buy your commercial building, do your best to buy a building that already has a tenant. Getting a new business into your building can be time-consuming and costly. Once your business tenant moves out, you may wait for months to get another rent payment. Try to buy a building with an established business in place.

#2. Consider a Partnership With Your New Tenant

If you do need to find a new tenant and business start-ups in your area are slow, consider partnering with your new tenant to set the building up properly for their success.
Of course, if they want special equipment or something particular to their industry, that’s their responsibility. However, you may want to get their input on any updates you needed to make anyway. Every building will need work, updates to flooring and lighting fixtures, and paint. Consider connecting with your new potential tenant to make sure that these necessary updates work well for their needs.

#3. Work With A Flexible Lender

If it takes you a while to get a tenant into your building, your bank may be unhappy. It’s critical that you demonstrate that you have the funding available to cover any gaps in DSCR or Debt Service Coverage Ratio. No matter how small your payments are, your business will look rough on paper if it takes a year to get a tenant in the space.
If you have the cash flow from other properties, demonstrate that the debt will be covered while you upgrade the building and find a tenant. This will be critical if you seek refinancing to raise more capital to purchase any more property.

Hot Key West Business Opportunities

101600 Overseas Highway $20,000,000

101600 Overseas Highway KEY LARGO, Florida

3 Beds 3 Baths 3,717 SqFt

139 Seaside Avenue $10,500,000

139 Seaside Avenue KEY LARGO, Florida

5 Beds 7 Baths 6,740 SqFt

517 Duval & 518 Bahama Street $7,500,000

517 Duval & 518 Bahama Street KEY WEST, Florida

4 Baths 7,854 SqFt

3428 Roosevelt Boulevard N 1,2,3,4,5,6 $5,995,000

3428 Roosevelt Boulevard N 1,2,3,4,5,6 KEY WEST, Florida

7 Baths 8,046 SqFt

112 Bounty Lane N $5,990,000

112 Bounty Lane N KEY LARGO, Florida

5 Beds 5 Baths 4,822 SqFt 0.180 Acres

3574 Overseas Highway 1-7 $4,800,000

3574 Overseas Highway 1-7 MARATHON, Florida

5 Beds 4 Baths 7,706 SqFt

100099 Overseas Highway $4,749,000

100099 Overseas Highway KEY LARGO, Florida

2 Baths 4,680 SqFt

30770 Overseas Highway $3,995,000

30770 Overseas Highway Big Pine, Florida

12,560 SqFt

919 - 921 Duval Street $3,750,000

919 - 921 Duval Street KEY WEST, Florida

9 Beds 6 Baths 4,173 SqFt

10 Ocean Drive E $3,699,000

10 Ocean Drive E MARATHON, Florida

5 Beds 3 Baths 2,832 SqFt 0.290 Acres

96180 Overseas Highway $3,600,000

96180 Overseas Highway KEY LARGO, Florida

3 Beds 3 Baths 1,445 SqFt 0.960 Acres

770 107th Street Ocean $3,500,000

770 107th Street Ocean MARATHON, Florida

33,977 SqFt

770 107Th St Ocean $3,500,000

770 107Th St Ocean MARATHON, Florida

101350 Overseas Highway $3,250,000

101350 Overseas Highway KEY LARGO, Florida

2 Baths 6,674 SqFt

155 Atlantic Circle Drive $3,100,000

155 Atlantic Circle Drive KEY LARGO, Florida

3 Beds 2 Baths 2,694 SqFt

Are You Looking for Commercial Property in the Florida Keys?

Use our site to search commercial real estate in Key West and all of the Florida Keys. Unlike the “big name” sites out there, our site is directly connected to our local MLS and is updated with new properties every HOUR. By creating a Property Manager account you can stay on top of the newest businesses that go up on the market and get Price Change alerts so you can stay ahead of other buyers and beat them to the best deals!
In the meantime, check out these 1-click searches:

Newest Key West Commercial Properties on the Market

Prime Commercial Real Estate in Big Pine Key. The property offers 125 footage on US1 and 200 feet deep. With access from the front of the building to the back. Back of the property is fenced with extra storage facilities. Metal building, metal roof, two half baths, two lofts, front office space. $1,545,000 Active

31133 Ave A Big Pine, Florida

2 Baths 2,460 SqFt

Come and Use this precious space at a prime location! There is so much foot traffic in this area. Your business here at 300 Southard Street Unit 103 is at a Great location. Parking space provided as well. Renting for $950. Ideal spot right by Truman Annex and in between Southard Street and Thomas Street. $950 Active

300 Southard Street 103 KEY WEST, Florida

5 Baths 135 SqFt

Hard to find office space available at Conch Harbor Retail Center. Suitable for office, at the corner of Caroline and Grinnell Streets. Men and Women's bathrooms, outdoor seating in courtyard. Neighbors include Prime 951 Steakhouse, Dante's Pool Bar and Restaurant and West Marine. Sales tax is in addition to rent quoted, minimum one-year lease. $4,328.33 Active

951 Caroline Street 207 KEY WEST, Florida

2 Baths

2,705 SF lot in X Flood Zone on White Street in Key West. Zoned HNC-1, see documents tab for land uses. Buyer to verify if any build back rights. Owner is a licensed FL Realtor. $499,000 Active

1212 White Street KEY WEST, Florida


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