Buying Commercial Warehouse for my Business

[Dean George]

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.

[Annunciata R.]

Hi Dean, I purchased a commercial premises for a business that I am starting. However I did so though using my pension funds so that income used was tax free. Can I ask how many employees you have ? There are alot of foreign investors that want to retire in the US who will readily loan or invest 500K to 1M to get their Green Card. Some of the rates they will be willing to accept is anything from 1 to 2 percent on the loan.