Commercial real estate is an entirely different ball game than residential property. Continue reading for some wonderful tips to help you though the commercial real estate buying process.

Use a digital camera to document the conditions. Try to make sure that your pictures shows the defects.

Unit Building

If you have to choose between two different properties, consider the benefits of opting for the larger amount of space. Getting the financing you need is going to be complicated whether you choose a five-unit building or a fifty-unit building. Just think about it as the more you buy the lower you are paying per unit, so you save more in the end.

Always rent out all the available space in your commercial rental properties. If you have units that are unoccupied, you will not only lose money due to lack of rent, but also the upkeep of the space. If you have more than one empty property, think about why that may be, and consider what you may be doing to drive tenants away.

When you are shopping for a commercial property, be sure to confirm that you will have access to utilities. Your business may have unique utility needs, but at the very least, you probably require hookups for electric, sewer, water and most likely, gas.

The area in which the property is located is important. Purchasing in an affluent area may help your business to be more successful, since the potential clients may have deeper pockets. If your business is a bit more shady, like a rent-to-own store, payday loan outlet, or pawn shop, it’s better to locate in a poor neighborhood.

Have your property inspected before you list it for sale. If anything turns up during the inspection, you should immediately address the problem.

Advertising your property to parties locally and abroad is important to ensure you get the best price possible. Many make a mistake in assuming that the only people who want to buy their commercial real estate property are those who are local buyers. There are many private investors who would purchase property outside of their local area if the price is right.

Start drafting letters of intent by focusing on the more central issues. Once you have agreement on those, broaden the negotiations to include any smaller issues that remain. This will diffuse tension during negotiations and will facilitate compromise on the minor issues.

Make a checklist to compare details when looking at several properties. Collect responses from everyone that offers one, but inform the property owners before you do anything else. There is nothing wrong with hinting that you have other properties in mind. You might score a more reasonable deal that way.

Know how to get emergency maintenance performed on a property at a moment’s notice. Make sure to consult your landlord about emergency repair responsibilities in your building or office. Keep the contact numbers handy, and ask them in advance what their response time is. In case a maintenance emergency should happen, you can use the information provided to lay out an emergency business and customer service plan to save your company’s reputation in case your business is interrupted.

Borrowers are required to order the appraisal in commercial loans. The bank won’t accept it as valid. Order it yourself to ensure everything goes as planned.

Look around at the general environment around the building. You will have to clean up environmental wastes from your building. Are you considering a purchase of property in an area that is prone to flooding? You might want to reevaluate your decision. If you are thinking about purchasing a property, be sure to contact an environmental assessment agency to get important information.

Real Estate

As the above article has shown, you have to consider many things when searching for commercial type of real estate. Use the tips in this article to avoid common commercial real estate scams, and get a great deal on the building out of which you will do business.