If you’re not sure where to start the search for a commercial property, finding one that fits the needs of your business may be very difficult. Try reading this article.
Never be afraid to negotiate, no matter which side of the table you are on. Ensure that your opinion is known, and wrangle for the best price you can get on the property.
If you are considering purchasing a piece of property, be sure to investigate what the area’s unemployment rates, income levels and average property values are. Think about what locations are near where you are thinking of buying. Hot spots are usually around places like hospitals or universities because the surrounding neighborhood is going to be more lively and open with jobs available.
When entering the commercial real estate market, patience is perhaps your best ally. Do not make impulsive decisions. The property you buy in a hurry might not deliver what you need to reach your goals, leaving you to regret the purchase afterward. It may take a year for your needed investment to come about in the market.
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. The fact is that commercial real estate brings in a higher return, therefore the process must be more intense.
It is important to learn and understand a metric used in commercial real estate investment called NOI or Net Operating Income. To be a success, you need to be able to stay on the positive number side.
Always ask to see the credentials of any inspectors you hire for your real estate deal. This is true when working with pest or insect removal, since many people who are non-accredited work in these fields. This can prevent larger problems from occurring after the sale.
When drawing up a letter of intent, try to solicit agreement on big issues first and leave smaller issues for later rounds of negotiations. This will diffuse tension during negotiations and will facilitate compromise on the minor issues.
If you are checking out more than one property, draw up a checklist to compare the features of the different properties. Take initial personal responses, but don’t go further without the property owner knowing. Don’t fear telling the owners that you might be interested in other properties. It might lead to a better deal.
Dual Agency
Carefully peruse the disclosure statements issued by the real estate agency you intend to hire. Remember that dual agency is also an option. In this case, the real estate agency represents both sides of the transaction. Dual agency occurs when the landlord and the tenant hire the same agent. Dual agency is something that should always get disclosure, and both parties involved should be in agreement with it.
All these tips are useful when it comes to selling or purchasing commercial property. The information in this article will help you set up strategies for staying on top of all the information you need to monitor and hopefully help you avoid those costly mistakes.