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Commercial real estate question

Old 02-06-2015, 08:20 AM
  #1  
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Default Commercial real estate question

We are looking at investing in a commercial property for our companies. We have done nothing but rent from day one so property ownership is a new thing for us. While I am no expert by any means on real estate, I do think it is a solid piece of land and will hold its value (located in an industrial park in a busy area).

My main question/concern is regarding the prexisting building on the land. It is a steel construction built in 1999. How well do buildings of this type typically hold up? I know there's a lot of other variable that can effect this but in general, but is steel a safe bet?

Thanks
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Old 02-06-2015, 10:34 AM
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I am not exactly sure of the type of construction you are talking about. Is it the corrugated steel building? In any commercial building, my main concern would be the age of the roof, for that would probably be the largest repair as well as any HVAC units. On my commercial properties, I have block and brick exterior with metal roof that is a ballasted membrane roof with interior drains. Ballasted as in river rock covers the entire roof. After 25 years, still good with occasional repairs. HVAC replacement requires crain rental etc. Consult roofers for their opinion on top if the walls look ok. Good luck. K
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Old 02-06-2015, 02:40 PM
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Originally Posted by Boatless33 View Post
We are looking at investing in a commercial property for our companies. We have done nothing but rent from day one so property ownership is a new thing for us. While I am no expert by any means on real estate, I do think it is a solid piece of land and will hold its value (located in an industrial park in a busy area).

My main question/concern is regarding the prexisting building on the land. It is a steel construction built in 1999. How well do buildings of this type typically hold up? I know there's a lot of other variable that can effect this but in general, but is steel a safe bet?

Thanks
Based on info provided. Yes. Typically steel buildings hold up well.

We have put up many Butler buildings In the past with no issues +20 yrs ago.
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Old 02-06-2015, 03:09 PM
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If you put a loan on it, you'll need a commercial appraisal which will tell you everything you need to know!
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