Martinez: If they are tired of paying rent and want to secure their facilities costs, buyers should definitely consider all the costs that go into purchasing a commercial real estate property. For example:

• When does my current lease expire?
• What will be my monthly exposure for the real estate purchase?
• Are there additional costs associated with the purchase?
• Whom should I contact for a loan?
• How long is the length of the loan and at what interest rate?
• Is the subject property zoned for my use and does it have the adequate parking?

It is very important to gather all of the associated costs of the property you are looking to purchase. You need to be as educated as possible and be pre-qualified through a reputable lender in your area. This can help you make a proper business decision to determine the monthly costs and savings (if any) and if it truly makes financial sense to move forward. Beyond the loan for the purchase of the real estate, you need to consider additional costs such as real estate taxes, property insurance and maintenance and repair for your property. Aside from these costs, you may also incur be a monthly HOA fee that comes along with the purchase of your commercial office space. Equally as important to the costs is uncovering whether the subject property you are interested in purchasing is properly zoned for your use and has enough parking to satisfy city codes. For example, if you are dentist, you will be subject to different parking-ratio requirements than an attorney would be, due to the high number of clients you are seeing on a daily basis.

GlobeSt.com: What should they know about the market before buying?

Martinez: It is important to look at the current market vacancy, depending on where they would like to own and out of where they would like to office. Currently, in locations such as Encinitas, CA, there is a total of 8,442 square feet of office space available for an owner/user purchase. This effectively equates to a .4% vacancy rate, meaning that aside from options being extremely limited, prices have continued to climb year over year. Let's compare these numbers to other parts of San Diego County, like Escondido, which currently has 4% of office space available for an owner/user purchase. In terms of pure number of properties for sale, you are looking at two properties in Encinitas versus 19 office properties available for sale in Escondido. What does this mean for the buyer? More buying power and control in price negotiations and terms—to a certain extent, of course. This is why it is always important to hire a local market expert to negotiate optimal pricing and terms.

GlobeSt.com: What about making an offer?

Martinez: Once they have found the office of their dreams, they are pre-qualified and they want to make an offer, the first step is to have their agent engage the owner in the property with a letter of intent to purchase the building. The letter of intent is a non-binding agreement to help parties clearly outline where the major terms will be negotiated. The major points that are to be negotiated are pricing and timing of the escrow period. The average escrow period is between 45 and 60 days but can sometimes be extended further depending on the complexity of the transaction and the situation of the ownership of the property. During the 45 days, the buyer of the property will be responsible for the physical inspection of a property and securing financing from a lender. Hiring an inspector with appropriate credentials is highly important during the early stages of escrow to determine if the real estate in question has any major defects and determining the necessary remedies. It is also equally important to have all financing pre-qualifications in order since the lender will need to order and appraisal for the property, which typically takes about 30 days from ordering to completion. It's important to remember that inspections are different from appraisals; the bank will want to make sure the property they are lending money for is worth the price the buyer and seller have negotiated. If they have negotiated a price that is $1 million over fair market, and the appraisal reflects this, the buyer should be prepared to either spend the difference in the amount or go back into negotiations with the owner of the property to split the difference. On the other hand, the inspector will determine if the property is going to need the roof replaced in five years and what kind of price tag will come along with the repairs.

GlobeSt.com: What else should our readers know about this?

Martinez: As professionals, we are all eventually asked where we are in the real estate cycle and which direction prices are heading. With commercial real estate prices now reaching and exceeding pre-recession levels, it is important for buyers to remain sound in their decision to purchase real estate; over-leveraging themselves at this stage in the game can put them in a dangerous financial debacle. To avoid pitfalls and costly mistakes, they should surround themselves with the proper team of real estate professionals to set themselves up with the best chance for success.