Commercial real estate is a complicated business that can overwhelm even the most seasoned professional, let alone the new guy. Below, you’ll find some great commercial real estate tips to help you alleviate or work around areas of stress that you could experience.
Be sure to negotiate on the fact of what you are, the seller or buyer. Fight for the best price possible and make sure that all parties involved listen to you.
Use your digital camera to take photographs of every room from all angles. Make certain that the pictures show irregularities, such as holes or bad paint on walls, carpet stains, and bathtub or sink discoloration.
Pest Control
When you lease a commercial site it is very important to that pest control is kept up-to-date. This is especially important if the region is known for certain types of pest infestations. If this is the case, ask specifically what the landlord will do with regard to pest control.
If you are selecting a broker, ascertain the amount of experience they have had within the commercial real estate market. Look for someone who knows the area you are interested in. With that broker, you also want to enter into exclusive agreements.
Net Operating Income, or NOI, is one of the most important metrics used in commercial real estate. You must understand what it means, and how it’s used. Success means that your income outweighs your operating costs.
Inspectors should always have credentials available for viewing, should you require their services in your real estate dealings. You need to be especially diligent when it comes to hiring a pest control service, as many people who work in this field aren’t accredited. This will avoid bigger problems in the post-sale.
Commercial rental buildings should feature sturdy construction and simple details. These spaces are more likely to fill quickly with paying tenants who are drawn towards something that is well maintained. Not are the buildings more sturdy, there will be less maintenance issues for the owner and the tenant.
Have a professional do an inspection of your commercial property prior to you listing it as available on the market. Any problems or necessary repair identified by a professional inspector should be addressed and fixed as soon as possible.
The commercial space you want to rent may need some changes before you can move in. The space may be due for some regular maintenance, or it may need something as simple as a new coat of paint. However, you might have to remove or relocate some of your walls so that you can get the most out of your space. Negotiate in advance who pays for these improvements or try to get the landlord to pay for at least a portion of the costs.
Emergency Maintenance
One of the most important things you should be aware of is emergency maintenance. Ask your landlord who is in charge emergency maintenance requests for the building. It is important to keep these contact phone numbers handy and to have a good understanding of how long it will take for them to respond if needed. Make an emergency plan once you have this information. If a flood, fire or break-in interrupts your normal business day, you need to have a plan in place so that you can re-open as soon as possible.
Finding and buying a commercial property can be a hassle no matter how many times someone has done it before. The advice in this article should help make the process of buying commercial property proceed more smoothly.