What if the Commercial Building You Want to Buy Needs Repairs - Florida Keys Commerical
In the commercial real estate business, you will come across properties that need repairs. Depending on the agreement, parties and condition of the property your ultimate decision may either make or break you. So, here are a few options you may want to consider when buying commercial buildings that need repairs.

Negotiate a Fair Purchase Price

It only makes sense to buy a distressed property if the value of the property after repairs is greater than the sum of fixing costs, holding costs, and acquisition cost. It wouldn’t make sense to have to undergo all the pressure of buying and repairing a property only to end up making a loss. Also, its logical to bring the figures to the table. The property value after repairs should be about 50% greater than the value of the distressed property before renovations. After analyzing all these figures, negotiate with the seller about bringing down the price of the property to a point where the deal seems reasonable to both parties.

Can the Seller Pay for Repairs?

It takes two parties to tango and this might be just what you need. The seller should be reasonable enough to admit that the damages on the property are apparent and someone needs to take care of them. Of course, the property value before repairs should be slightly lower but will rise immediately the seller decides to take the repairs into his or her own hands. On the good side, it offloads the distress that comes with structure repair and renovation projects. If the seller decides to fix the repairs in his or her own account, you might want to analyze if the final purchasing price makes sense. If it does, you won’t get a better deal elsewhere.

Sometimes You Need to Find a Different Building

Sometimes deals aren’t for you. For instance, in a case where the seller won’t bend to negotiate for a fair deal or fix the damage, you might want to step back and go back to the drawing board. Whenever the figures keep dragging you back to making losses on the accounts sheet, do yourself a favor and walk away. Keep browsing the commercial listing market to find other favorable deals that won’t leave dents on your bank account.

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Newest Key West Commercial Properties on the Market

One of a kind Investment & trophy property in Key Largo.This is a State of the Art security facility and very few properties comparable anywhere in the Keys. Property is leased & guaranteed by the Federal Government. Newly constructed in 2016, concrete building & interior improvements were designed and specially built for US Customs & Border Protection. This is their main office in Key Largo. Main property is fenced with private levered gate and secure with restricted access. Paved parking lot. Property totals 1.5 Acres with 1/2 acre of unbuildable hardwood hammock. 6,674 sf. building has 5,177 sf. of net leaseable area & is a concrete bunker. Poured CBS construction, Bullet proof windows, Kevlar lined walls, enhanced video surveillance, elevator, fully ADA compliant with full elevator. Propane Generator with automatic transfer backs up entire building.Full service lease started June, 2017, five years with one five year option. 2 years remain on existing term and then rent to be substantially increased for a new lease. This is a full service lease. Landlord responsible for certain maintenance & Tenant reimburses Landlord base rent and those operating costs.Tenant also pays Real Estate Taxes and Insurances. One could not replicate this building or its features in today's market. $3,500,000 Active

101350 Overseas Highway KEY LARGO, Florida

2 Baths 6,674 SqFt

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. Successful Boat Rental Business with 17 Boats included in the sale. Lucrative 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


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