buy industrial property in Chicago

Common Mistakes to Avoid When You Buy Industrial Property in Chicago

Buying an industrial property can bring lucrative opportunities for your business, paving way for growth and diversification. To maximize the potential of your asset and ensure that it generates long-term value, it is crucial to take the right steps  to avoid common pitfalls. Discussed here are the top 5 mistakes that can derail your investment when you plan to buy industrial property in Chicago.

  1. Not Choosing the Right Location

 

Location plays an integral role in property selection. A good location helps reduce your production and distribution cost. It is also fundamental to accurate property valuation and helps generate a higher Return on Investment (ROI). To ensure you select the right location, consider important factors like supply of labor, raw material availability, communication & transportation, climate conditions, and local laws.

  1. Inaccurate Property Valuation

 

Not performing thorough research about the property can cause you to pay more than its actual market value. This can result in bigger losses in the future. Before you sign an agreement, make sure to accurately evaluate every feature and flaws of the industrial property to strike an optimal deal.

  1. Lack of Due Diligence

 

When you buy industrial property in Chicago, never ignore the importance to perform due diligence. This should include:

  • Comprehensive property inspection
  • Selecting the location based on target market, overhead costs, and purpose
  • Thorough risk assessment
  • Reviewing underwriting requirements and sales terms
  1. Focusing only on ROI

 

The projected ROI is certainly an important indicator of an industrial property’s viability. However, that should not be the only factor you should consider. Other factors like property appreciation, cash flow, tax benefits, or equity gains are also essential to help make informed decisions.

  1. Doing Everything Yourself

 

For a reliable, cost-efficient, and hassle-free buying experience, hire professional commercial real estate brokerage services in Chicago. Choose an agent that has experience in the industrial property market with a broad local network in Chicago.

Hire an expert real estate professional like TAG Industrial to help avoid the above mistakes and ensure making effective property investment decisions.

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