Commercial real estate is an entirely different ball game than residential property. This article will provide some ideas to help you establish your bearings in the world of commercial real estate.
Make sure to negotiate whether you’re the seller or buyer. Be certain your needs are met, your concerns are heard, and you champion a fair, honest price for the real estate.
Take photos with a digital camera. Be especially diligent in photographing any flaws that exist when you move in, like cracks in the wall or stains on the carpet.
In order to learn more about the commercial real estate market, find a website that caters to investors of different skill levels. No one can ever honestly claim that they know too much.
Take note that commercial transactions take more time, they are complex and they take more involvement than home purchases are. If you want things made easier, you might want to change what you’re getting yourself into. Yet, you should realize that the extra focus on, and length of, the process is essential in order to gain a better return on the investment.
Learn to understand the commercial real estate metric called Net Operating Income (NOI). As long as you get positive numbers, you will be successful.
Double-check that you are seeking a realistic amount of money for your property. There are many variables that can greatly impact the true value of your lot.
If you are planning to rent your commercial properties once you purchase them, opt for solidly constructed buildings that are simple in their design. These spaces are more likely to fill quickly with paying tenants who are drawn towards something that is well maintained. Maintenance is also easier, because these buildings require less repair.
Ensure there is adequate access to utilities on the commercial property. Your business may have unique utility needs, but at the very least, you probably require hookups for electric, sewer, water and most likely, gas.
In the earliest stages of negotiating your lease, it is in your best interest to ensure that only a few conditions are capable of constituting acceptable means of default. Your tenant will be less likely to default on the lease if you do this. This is a bad thing, so do what you can to minimize the chance of it happening.
You need to advertise that your commercial property is for sale to both locally and non-local people. Many sellers mistakenly presume that their property will appeal only to local buyers. In fact, the interest level can expand far beyond the local scene as private investors expand their interest. These investors are searching for affordable property and may be interested in yours.
While searching through different properties, make a checklist of each tour you went on. Accept the proposal responses during the first round, but before going further, notify all the property owners involved. It will likely be to your advantage to informally mention that you are looking at more than one property. Making them aware you have other options may get them to accept a lower offer.
Check any disclosures a potential real estate agent gives you carefully. Understand the meaning of dual agency. In this case, the agent is two-faced: she is representing both parties to the transaction. In simpler terms, both the landlord and the tenant are simultaneously represented by the agency. If this is the case, and the agent is a dual agent, this should be known to both parties and agreed to by both parties.
As you are now aware, a number of factors must bear consideration in your commercial property hunt. In order to get the best possible deal, be sure to follow this article’s advice.