What if the Commercial Building You Want to Buy Needs Repairs?

In the commercial real estate business, you will come across properties that need repairs. Depending on the agreement, parties and condition of the property your ultimate decision may either make or break you. So, here are a few options you may want to consider when buying commercial buildings that need repairs.

Negotiate a Fair Purchase Price

It only makes sense to buy a distressed property if the value of the property after repairs is greater than the sum of fixing costs, holding costs, and acquisition cost. It wouldn’t make sense to have to undergo all the pressure of buying and repairing a property only to end up making a loss. Also, its logical to bring the figures to the table. The property value after repairs should be about 50% greater than the value of the distressed property before renovations. After analyzing all these figures, negotiate with the seller about bringing down the price of the property to a point where the deal seems reasonable to both parties.

Can the Seller Pay for Repairs?

It takes two parties to tango and this might be just what you need. The seller should be reasonable enough to admit that the damages on the property are apparent and someone needs to take care of them. Of course, the property value before repairs should be slightly lower but will rise immediately the seller decides to take the repairs into his or her own hands. On the good side, it offloads the distress that comes with structure repair and renovation projects. If the seller decides to fix the repairs in his or her own account, you might want to analyze if the final purchasing price makes sense. If it does, you won’t get a better deal elsewhere.

Sometimes You Need to Find a Different Building

Sometimes deals aren’t for you. For instance, in a case where the seller won’t bend to negotiate for a fair deal or fix the damage, you might want to step back and go back to the drawing board. Whenever the figures keep dragging you back to making losses on the accounts sheet, do yourself a favor and walk away. Keep browsing the commercial listing market to find other favorable deals that won’t leave dents on your bank account.

Hot Key West Business Opportunities

$20,000,000

101600 Overseas Highway KEY LARGO, Florida

3 Beds 3 Baths 3,717 SqFt

$10,500,000

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5 Beds 7 Baths 6,740 SqFt

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4 Baths 7,854 SqFt

$5,990,000

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5 Beds 5 Baths 4,822 SqFt 0.250 Acres

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7 Baths 8,046 SqFt

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3574 Overseas Highway 1-7 MARATHON, Florida

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2 Baths 4,680 SqFt

$3,995,000

30770 Overseas Highway Big Pine, Florida

12,560 SqFt

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919 - 921 Duval Street KEY WEST, Florida

9 Beds 6 Baths 4,173 SqFt

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10 Ocean Drive E MARATHON, Florida

5 Beds 3 Baths 2,832 SqFt 0.290 Acres

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770 107th Street Ocean MARATHON, Florida

33,977 SqFt

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1110 White Street KEY WEST, Florida

6 Beds 6 Baths 3,657 SqFt

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352 Seaview Drive E Duck, Florida

2 Beds 3 Baths 1,944 SqFt 0.190 Acres

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

Explore the possibilities at 1900 Staples Avenue, a mixed-use property blending residential with commercial potential. This property includes a 2-bedroom, 1-bathroom house designed for practical living. Complementing the residential space are three small commercial units, offering versatility for various business endeavors. Conveniently located on the corner of Staples & First Street, the property provides great visibility and accessibility with a First Street address as well. Rare Key West Mix-use opportunity.

$1,600,000 Active

1900 Staples Avenue KEY WEST, Florida

2 Beds 2 Baths 1,749 SqFt

An exceptional mixed-use property situated in Stock Island's center, this property features 2 commercial spaces and 2 apartment's, presenting a distinctive chance for investors or those seeking their own business space. Spanning over 12,000 square feet, ample storage is available in addition to a 1-bedroom/1-bathroom and a 2-bedroom/2-bathroom layout upstairs. Kindly refrain from disturbing the current tenants or ongoing business operations; a minimum notice of 48 hours is required for showings

$1,999,999 Active

5730 2nd Avenue Stock Island, Florida

3 Beds 4 Baths 3,674 SqFt

Professional Friendly Business Environment, hard to find large office space in Stock Island, Unit A offers 1,627sf of space on the 1st floor with large windows and private bathroom. Elevated, concrete structure with 3 reserved off street parking. Price quoted is base rent only, not quoted is sales tax and additional $200.00 per month for utilities.

$3,500 Active

5570 3Rd Avenue A Stock Island, Florida

1 Baths 1,627 SqFt

Newtown office space for lease with parking, private rear entrance from Riviera Drive.Good condition, reception area, private office and private bathroom.

$1,650 Active

3208 Flagler Avenue 2 KEY WEST, Florida

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