The Commercial Investor’s Guide
Commercial property rewards preparation. This guide walks the path from first look to closing table, the way deals actually run in the Columbus market.
Start with the return, not the building
Every commercial investment is a stream of income wearing a building as a costume. Before falling for brick and beam, pin down: current rent roll and lease terms, real operating expenses (not the seller’s optimistic pro forma), and what comparable properties actually trade for. The cap rate — net operating income divided by price — is the market’s shorthand for risk: lower cap rates mean the market sees safer income; higher ones price in vacancy risk, deferred maintenance, or a thinner tenant pool.
Due diligence: where deals are won
Once under contract, the clock runs. A thorough Valley due-diligence checklist covers:
- Leases and estoppels — confirm every tenant’s terms directly, not just from the seller’s summary.
- Financials — two to three years of operating statements and tax returns for the property.
- Physical condition — roof, HVAC, parking, and for older Columbus stock, environmental history (Phase I at minimum).
- Title, survey, and zoning — easements, encroachments, and whether the current use is actually permitted.
Financing a commercial purchase
Expect 20–30% down for most investment property, with local and regional banks competitive on owner-occupied deals (and SBA 504/7a programs worth a look when your business will occupy at least half the space). Lenders underwrite the property’s income as hard as your balance sheet — a clean rent roll is collateral.
Why local representation matters
Commercial comps aren’t public the way home sales are. Advisors who close here know what traded, at what number, and why — that intelligence sets your offer price, your walk-away point, and your negotiation posture.
Talk through your first (or next) acquisition with an advisor →