3 Things to Know Before You Buy a Commercial BuildingOwning commercial real estate is very different from owning residential real estate. Once you own a commercial building, you may need to get the building re-zoned for different uses or upgrade the building for new tenants. In addition, residential tenants are happy to sign up for a one year lease. As a general rule, business leases need to run longer.

3 Things to Know Before You Buy a Commercial Building

The most important things to know include:

  • Try to inherit a tenant
  • Consider a partnership with a new tenant
  • Work with a flexible lender

#1. Try to Inherit a Tenant

When you buy your commercial building, do your best to buy a building that already has a tenant. Getting a new business into your building can be time-consuming and costly. Once your business tenant moves out, you may wait for months to get another rent payment. Try to buy a building with an established business in place.

#2. Consider a Partnership With Your New Tenant

If you do need to find a new tenant and business start-ups in your area are slow, consider partnering with your new tenant to set the building up properly for their success.
Of course, if they want special equipment or something particular to their industry, that’s their responsibility. However, you may want to get their input on any updates you needed to make anyway. Every building will need work, updates to flooring and lighting fixtures, and paint. Consider connecting with your new potential tenant to make sure that these necessary updates work well for their needs.

#3. Work With A Flexible Lender

If it takes you a while to get a tenant into your building, your bank may be unhappy. It’s critical that you demonstrate that you have the funding available to cover any gaps in DSCR or Debt Service Coverage Ratio. No matter how small your payments are, your business will look rough on paper if it takes a year to get a tenant in the space.
If you have the cash flow from other properties, demonstrate that the debt will be covered while you upgrade the building and find a tenant. This will be critical if you seek refinancing to raise more capital to purchase any more property.

Hot Key West Business Opportunities

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

Tranquil ''Old Keys'' style marina nestled on a rare 1 + acre Oceanside lot with many possible uses! Deep water protected harbor with 18 large boat slips that can handle 50+ ft. yachts. Approach depth approx. 6 ft.+ at high tide with clearly marked channel. Lucrative Boat Rental business with 17 Boats included in the sale. Successful Vacation Rental Business with (10) Aqua Lodges and 1 houseboat also included. Water, New 30 Amp and 50 Amp electric at each slip. Fuel dock, concrete building w/office, ship store, workshop, and garage/storage. 2 Outdoor Showers, 2 Bath houses with indoor showers, stalls, and dressing area. New Waste / Pump Out Station, and fuel station. An additional separate concrete building used for storage on North side of property. Private marina, Must call for an appointment and sign an NDA/CA for more information. $9,750,000 Active

200 Treasure Harbor Drive ISLAMORADA, Florida

4 Baths 1,069 SqFt

Prime retail location on busy 300 block of Duval St. Good visibility in the 6 unit strip center located at the corner of Eaton St.Unit E is approx. 800 sf. and has been totally renovated including new flooring, ceilings, lighting and AC fixtures. Exterior of the entire building has been renovated as well. Private ADA compliant half bathroom. Ample customer and employee parking in the rear. Great mix of tenants including Wendy's, Kermits Key Lime Pie store, Nitro Ice Cream and Mystic Lobster Roll. Potential for retail or small restaurant. Tenants to pay their own Utilities incl. Electric, Water and Trash.Base rent is $80/sf. plus current NNN estimated at $24.50/sf. plus sales tax. Total rent is $104.50/yr x 800 sf. + $83,600/yr. or $6,966.67/mos. plus sales tax.Interior photo's coming soon. $5,334 Active

335 Duval Street E KEY WEST, Florida

2 Baths 6,495 SqFt

Prime Commercial Investment property in the heart of Big Pine Key at MM 30. Commercial zoning allows for many other Commercial uses. Large lot is 20,150 sf. or just under 1/2 Acre. Good visibility with 120' of frontage on Overseas Hwy x 167' deep. There is some parking in the front of the property and within FDOT right of way. Also, large vacant land in rear of building for possible added income with parking, equipment storage or may be potential for additional building. Current CBS single story building is 3,200 sf. Formerly divided up into a 6 unit strip center it is currently fully occupied by 4 tenants. Each tenant is mos. to mos., or soon will be. Leases have been short term and tenants paying below market rents. First time on the market since current owner purchased property in 1977! $1,150,000 Active

30200 Overseas Highway Big Pine, Florida

3,200 SqFt

Join the exclusive Duval Square with this prime 733 sf. commercial unit. Walking distance to everything downtown on Duval St. Offering for sale at one of the lower prices per sq. ft. in the complex. This unit has been extensively renovated in the last two years including new AC, LPV flooring, new lighting, exam rooms, half bath and freshly painted. Unit has a nice open reception area with two private exam rooms. There is also a good size storage room in the rear. This space has a lot of natural light from 2 large plate glass windows and glass french doors in the front. This unit has good visibility with substantial frontage and a large sign above the entrance. Unit comes with 1 private parking space in the garage and ample parking for employees and customers in the front. Currently leased from Oct. 2022 to Sept. 30, 2025 total rent paid including base rent, cam and sales tax $3,317 per mos.The business, furniture and equipment seen in the photo's are not included. $625,000 Active

1075 Duval C-20 Street C20 KEY WEST, Florida

1 Baths


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