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 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 takes 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!