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

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

This is the price for one lot. Total of three contiguous, commercial dry lots at the end of 20th St. Oceanside. Big bonus, each lot includes a deeded and assigned deep water wet slip! Each lot may be purchased individually or together. Each lot is 94.5' wide by 110' deep and has its own water & electric meters. Three addresses are 351 20th St. Ocean, 361 20th St. Ocean and 371 20th St. Ocean as the end lot. Each lot is part of a Fisherman's Pointe HOA with fees of $1,200 per year per lot. Lots are currently being used by Fisherman for trap repair and storage. Favorable Mixed Use- Maritime Zoning allows for many commercial uses.The MU-M zoning district is intended to establish areas suitable for uses which are essential to the commercial maritime industry, including sales and service of fishing equipment and supplies, seafood processing, fishing equipment manufacture and treatment, boat storage, restaurants, retail and affordable housing residential uses.The MU district is designated within the Mixed-use Commercial (MUC) future land use category on the Future Land Use Map (FLUM). $749,900 Active

351 20th St, Marathon MARATHON, Florida

This is the price for one lot. Total of three contiguous, commercial dry lots at the end of 20th St. Oceanside. Big bonus, each lot includes a deeded and assigned deep water wet slip! Each lot may be purchased individually or together. Each lot is 94.5' wide by 110' deep and has its own water & electric meters. Three addresses are 351 20th St. Ocean, 361 20th St. Ocean and 371 20th St. Ocean as the end lot. Each lot is part of a Fisherman's Pointe HOA with fees of $1,200 per year per lot. Lots are currently being used by Fisherman for trap repair and storage. Favorable Mixed Use- Maritime Zoning allows for many commercial uses.The MU-M zoning district is intended to establish areas suitable for uses which are essential to the commercial maritime industry, including sales and service of fishing equipment and supplies, seafood processing, fishing equipment manufacture and treatment, boat storage, restaurants, retail and affordable housing residential uses.The MU district is designated within the Mixed-use Commercial (MUC) future land use category on the Future Land Use Map (FLUM). $799,900 Active

371 20Th Street MARATHON, Florida

This is the price for one lot. Total of three contiguous, commercial dry lots at the end of 20th St. Oceanside. Big bonus, each lot includes a deeded and assigned deep water wet slip! Each lot may be purchased individually or together. Each lot is 94.5' wide by 110' deep and has its own water & electric meters. Three addresses are 351 20th St. Ocean, 361 20th St. Ocean and 371 20th St. Ocean as the end lot. Each lot is part of a Fisherman's Pointe HOA with fees of $1,200 per year per lot. Lots are currently being used by Fisherman for trap repair and storage. Favorable Mixed Use- Maritime Zoning allows for many commercial uses.The MU-M zoning district is intended to establish areas suitable for uses which are essential to the commercial maritime industry, including sales and service of fishing equipment and supplies, seafood processing, fishing equipment manufacture and treatment, boat storage, restaurants, retail and affordable housing residential uses.The MU district is designated within the Mixed-use Commercial (MUC) future land use category on the Future Land Use Map (FLUM). $749,900 Active

361 20th Street MARATHON, Florida

Oversized Waterfront Commercial lot located in the Big Pine Shores neighborhood. This parcel measures approximately 17,000 square feet (0.39 acres) and is zoned CFSD-12 (Coastal Fishery and Shoreland District) per Monroe County records, offering a rare opportunity for Fishing related activities and or residential development. Geraldine Street runs roughly north-south on the island's eastern side, placing the property on the bay side (Florida Bay), not the open ocean. This is a corner lot with canal frontage on two sides. In addition there is a solid, concrete seawall that surrounds both canal sides. Estimated control depth is approximately 3-4 feet, based on typical depths in the area. This bayside location offers boat access to Florida Bay. There are no structures on site; the property is vacant land only. No personal property is included in the sale. Buyer to verify utility availability and development requirements. This is a prime piece of waterfront land in the Lower Keys with flexible potential. Situated on Geraldine Street in Big Pine Key, this property provides a blank canvas with waterfront for fishing related activities or as an investment project. $775,000 Active

29557 Geraldine Street Big Pine, Florida


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