It can be an exciting step for a Wisconsin company to buy or lease a new commercial building or storefront. Perhaps the needs of your business have changed, or maybe you’re offering new products that require a different type of space. When you find the right place for your company, you may feel tempted to rush ahead and sign the contract, but that’s probably not the wisest course of action.
There are many reasons why you should slow down and walk through this process slowly and thoughtfully. In preparation for signing a lease or closing on a commercial property purchase, you will want to take the time to be thoughtful and to do your due diligence. Rushing the process can leave you with a variety of costly issues.
What to look for
Doing your due diligence can involve many different things, but it includes looking for issues that could cost you time, money or difficulty in the future. Finding these issues before you finalize the agreement means that you may be able to renegotiate the contract or back out before it’s too late. Some of the things you will want to ask about or investigate include:
- Easements on the property
- Current zoning designations
- Liens on the property
- Defects with the building
- Environmental issues
In some cases, it may be possible to negotiate a better price if you will have to fix something, or you may be able to ask that the seller or landlord address the issue. Regardless, it’s always better to know about a potential hold-up before you sign on the dotted line or end up with a situation that will be costly to address. Doing your due diligence may require that you hire certain types of professionals to look at the property and do an inspection on your behalf.
The right step for your company
In a commercial real estate transaction, there is a lot on the line for your Wisconsin business. It is beneficial to protect your interests as best you can, starting with securing experienced legal guidance. Having help from the beginning stages of this process will ensure that you make choices that are practical and smart. If you are thinking about leasing a new space or buying property, you will want to take steps to ensure you are not exposed to unnecessary risks.