Buying Commercial Warehouse for my Business
Been some years since I posted here, and I did a search and didn't see a similar topic.
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I own a business that operates out of a warehouse in my home city. I've rented for almost 9 years now, starting out in a 6,000SF building and now occupying a 25,000SF warehouse.
My lease is up in 10 months and I've been evaluating purchasing a warehouse personally and renting it to my business.
I've found a broker that I like (interviewed a bunch), and have even located a few properties that make sense.
I've interviewed fellow business owners who purchased their own commercial buildings as well.
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Due to low interest rates, the savings I have stashed away over the years and the ability to put just 10% down with a SBA loan, I'm thinking now would be the time to buy. Prices have gone up a bit in the last 2 years, but it's a longer term play
Long term, I do plan on selling my business, but that might be 2 years or 5 or 10 down the road.
I could afford a $1M building now on my own, anything more I would need investors or equity partners. If I buy a $1M building, chances are only my company would occupy. If I bought a more expensive (and larger) building, I would occupy 51% and sub-lease the rest.
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I'm curious if anyone here has purchased commercial real estate specifically to house a company they own.
Best choice ever?
Worst use of capital ever?
Somewhere in between?
Trying to get all thoughts and ideas before doing a deal that will certainly impact me for many years.