First Commercial Biz. Help with Process Needed.

First Commercial Biz. Help with Process Needed.

Investor · Beaver Falls, PA · Member since 2015 · 275 posts · 82 votes

Hi we recently closed on our first commercial property. The property was a chiropractor for 30 years and is set up like a doctors office. The building is on a very busy road. I’m not sure on how to start the renovation. I’m unsure if I should reach out or advertise to businesses prior to me starting the Reno so I can build to suit or Reno the property in a way that would fit a larger array of businesses. Also a sign comes with the business that needs updated, should I lean towards a digital sign or wait to see what business comes in and get their input? Any advice will help. Thanks

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Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
1y

@John Matthew Johnston, 9 times out of 10, with second gen (or older) space, you list for lease as is and offer TI packages accordingly.  

As noted, it would be a huge waste to whitebox it to just end up with another medical user that you need to demise the same walls your tore out. Dental user, urgent care, etc would all likely take a serious look with minimal work needed.

Signage will likely be partially impacted by local zoning.  But like any renovation plans, list as is and offer allowances towards tenant signage, as needed.

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  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    1y

    OP. 

    See if a new Chiropractor came in the area.  Assume the other retired.


    Reach out to your closest Chiropractor schools.   Interview current and recent graduates.  Set up a good startup lease deal with option to buy after 5 years.

  • Investor · Beaver Falls, PA · Member since 2015 · 275 posts · 82 votes
    1y

    @Henry Clark Thanks for the reply. Great idea

  • Ronald RohdePro Member
    Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
    1y

    You bought a vacant commercial building without a plan? Typically you would have an idea of specific tenant uses prior to closing. At minimum, you should advertise as-is while you are creating your space plans.

    Demo and whitebox it, maybe build office portion. Do you have grade level rear load? Roll up doors for flex office?

  • Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
    1y

    @John Matthew Johnston, 9 times out of 10, with second gen (or older) space, you list for lease as is and offer TI packages accordingly.  

    As noted, it would be a huge waste to whitebox it to just end up with another medical user that you need to demise the same walls your tore out. Dental user, urgent care, etc would all likely take a serious look with minimal work needed.

    Signage will likely be partially impacted by local zoning.  But like any renovation plans, list as is and offer allowances towards tenant signage, as needed.

  • Michael K GallagherBusiness Member
    Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
    1y

    @John Matthew Johnston It would likely be more efficient to market the available space as is.  if you don't have a space plan or floor plan for the current space its likely worth getting to help market.  The tenants that reach out to lease the space will likely ask for some kind of tenant improvement allowance to assist with the buildout.  You could be involved in that depending on the landlord's work requested in the deal, but generally the tenant is goign to have their own contractos come in and do the buildout, you'll likely just be contributing via cash up front for the buildout or abeted rent of some kind.  

    Obviously the most efficient thing would be to find a similar med office use.

    Is this a lighted intersection? near a retail center point of some kind?  single tenant or multi tenant building?  

  • Investor · Beaver Falls, PA · Member since 2015 · 275 posts · 82 votes
    1y

    @Ronald Rohde we got a great deal on it and it’s 30 seconds from my house. I could sell it today and make money but yes we are not sure what we are going to do with it. It does not have a roll up door or loading dock. It’s currently set up for a chiropractor/ doctor office

    • Ronald RohdePro Member
      Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
      1y
      Quote from @John Matthew Johnston:

      @Ronald Rohde we got a great deal on it and it’s 30 seconds from my house. I could sell it today and make money but yes we are not sure what we are going to do with it. It does not have a roll up door or loading dock. It’s currently set up for a chiropractor/ doctor office


       Gotcha, if you know the market that's great. Flex office can be much more valuable, but you just need to check your permitted uses and go from there. I suspect the school may limit even C1 normal uses without a SUP or CUP

  • Investor · Beaver Falls, PA · Member since 2015 · 275 posts · 82 votes
    1y

    @Michael K Gallagher it’s zoned C1 so it’s commercial within a residential area. Right across from an elementary school

    • Ronald RohdePro Member
      Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
      1y
      Quote from @John Matthew Johnston:

      @Michael K Gallagher it’s zoned C1 so it’s commercial within a residential area. Right across from an elementary school


       Tough zoning

  • Investor · Beaver Falls, PA · Member since 2015 · 275 posts · 82 votes
    1y

    @Evan Polaski Thanks for the reply, great advice .

  • Investor · Beaver Falls, PA · Member since 2015 · 275 posts · 82 votes
    1y

    @Henry Clark Thanks, seems like a great idea. Appreciate it

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