Location, location. . . you know the rest.
The 3-L’s are synonymous with residential real estate but many a professional often forget that commercial real estate has to abide by many of the same rules that apply to residential.
Here in San Diego – after years of very dry conditions we are experiencing levels of rain and runoff flooding that only happen on the 20 and 30 year cycles. Those cycles should not be considered as hard rules when considering a 10 year lease – or even a 5 year lease.
Some leases can offer a minimal protection from unforeseen events that stall your business and cut your expected monthly income – and sometimes insurance can help cushion the unexpected – but the best prevention is long-term planning that take into account natural events that can cause your business to close, stall, or even be interrupted for weeks!
From store-front to golf course – due diligence is as much a hard rule in commercial real estate as it is in residential, and in many cases the cost of picking a poor location can be far more damaging to a commercial business than a residential home.
Extreme weather events remind us that location can be everything!
Your first and best defense? Pick a proven leader in commercial real estate with local experience to guide you into a long term investment for your business – and always pick a location by its history!