The importance of proper inspection and appropriate response in business real estate

by Business Case Studies on Wednesday 13th September, 2017

Real estate is often a big part of business. Every new business that starts with the hopes of becoming a worldwide known enterprise, or even an institution that has already reached that status and is looking to further its growth, is interested in one thing: buying building or land to serve specific purposes.

Physical locations are still important

It is true that today, a large part of business takes place online, and with the help of numerous platforms, businesses can establish an incredible number of connections with both partners and customers. With that in mind, we are still in a place where we are in need of physical locations to further business. This is a state we will not be able to leave behind no matter how advanced our online resources become for some reasons:

Storage

The prime reason why physical locations are needed is storage.  Without storage, the number of markets that would become ineffective is beyond counting. Businesses need storage to preserve goods of various kinds and prepare them for their eventual sale. This allows for hefty work orders to be completed very efficiently and business productivity as a whole to advance at an infinitely more appealing rate. Unless every single entrepreneur were too slow down and adopt a borderline primate means of doing business, storage remains a mandatory resource.

Market and physical presence

No matter how many people use the internet and how much more will add to that number as more and more generations become internet aware, the best place for your business to be seen remains the physical world.  A well-positioned shop or base of operations for your business can generate a market presence and brand awareness that tops the capabilities of online website hits. Your website can only generate brand awareness based on people that use the internet. A physical store generates brand awareness through people that simply walk past it on a daily basis, on their way to various destinations.

Convenience

The ultimate notion of convenience as far as shopping goes is having your desired products dropped off right on your doorstep. However, as we evolved, we discovered that having things delivered to us is not always the most advantageous approach. There are many situations in which a customer cannot be home to receive a package on a certain date or within a certain timeframe. In this situation, they choose to pick up the products from the physical store themselves, thus allowing them to gain possession of the products in a manner convenient to them and their schedule.

These are some of the most important reasons for which physical locations are still an essential part of business Now that we have established this, it’s time to move to why it’s important for a location to undergo proper inspection prior to a business buying it out.

Inspecting a property before purchasing

This is a critical task in the process of acquiring real estate. Without this part of the process, you might end up owning something that is not only not profitable but also a complete financial detriment to your organization and plans. As an example we will take a closer look at the case study of oil tank removal.

Underground oil tanks have been used for a lengthy period of time in the past, making them a common element to be found within any residence or building. However, as better solutions for heating have been made available, underground oil tanks had become as unpopular and unsatisfactory as they were unsafe for the environment.

Today, building possess the risk of having an underground oil tank that will generate the following risks:

  • Environmental hazard which can result in a devastating pollution underneath the recently purchased building
  • Unnecessary tax and expense generator based on modern regulations regarding owning an underground oil tank
  • Costs of removal and elimination of already existent damage

Spotting and recognizing an oil tank leakage

This would be your main concern from a position of potential buyer. You are interested in making sure that the building you want to purchase does not present an underground oil leakage.  There are several things that lead to underground oil tank leakage. Here are some of the things that oil tank experts say lead to oil tank leakage:

Rust and perforation

The accumulation of rust can cause an oil tank to suffer perforation which leads to the spillage of the oil inside. Another way through which the tank is physically damaged is through the reaction that takes place during the heating of the oil. When this process takes place, water comes in contact with sulphur within the fuel. These causes gradually chip away at the integrity of the oil tank itself, eventually leading to a leak.

Bad installation

This is one of the most common reasons for which buildings are affected by oil tank spillage. Bad installation practices lead to chipping and damaging of the tank before it is even installed completely. This means that it is only a matter of time before enough of the tank’s contents end up within the soil, leading to damaging effects on the environment, as mentioned previously.

Special tests

Special tests are needed in order to detect whether or not a tank is leaking when effects of the previously mentioned causes aren’t visible. Both a portion of the reservoir, as well as the soil within the challenged area, are tested in order to determine if there are signs of contamination, deterioration, etc.

Bottom line

It is paramount for businesses to invest in determining that a property is in good condition before purchasing, in order to avoid a chained series of requirements which all end up as expenses coming from the business’s pocket. As the necessity for physical business locations persists in constant struggle with the online medium, it is more important than ever to eliminate and avoid unnecessary risks through thorough investigation.

 

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