Being a commercial property owner is exciting, however, it can also be quite an undertaking when trying to manage the property. You might wonder what to do first! While it may be difficult to find all the information you need to help you take of the property, the following article will give you some great tips on how you can go about managing the process of commercial property ownership.
Don’t be led by hype and fads when searching for commercial real estate. Do not rush into making quick real estate decisions. If you buy a property that doesn’t meet your needs, you’ll sorely regret it. It could be a year-long process before you begin to see investments in your market pay off.
You might have to spend a lot of time on your investment at first. Good opportunities can be found if you look, and after you have made a purchase, the property may require repairs or remodeling. Don’t throw in the towel due to the massive hours needed. Your rewards are down the road, and they are worth it.
With the commercial property, you need to make sure there is easy access to the utilities. In addition to any needs specific to the business, you will surely need to have gas, electricity, sewer and water services, and so on.
If you are negotiating a commercial lease, make sure nothing can be considered as events of default. Doing so makes it less likely that a tenant can default on the lease. You, of course, would not desire this to occur.
Advertise your commercial real estate far and wide. Many sellers mistakenly assume that their property is only interesting to local buyers. Many investors will consider purchasing a property outside their own region if the price is right.
You will need to know what you are looking for in a commercial property prior to beginning your search. List the qualities that concern you most in a property (e.g. restroom facilities, conference facilities, number of units available, square footage, etc.)
You need to know the details of emergency maintenance procedures. Speak with your landlord, and ask who is in charge of emergency repair work at your home or office. Be aware of the response time of emergency personnel, and be sure to have their contact information handy. Create an emergency plan using your landlord’s information so that you can protect customer service and your reputation in case of a disruption to your usual business.
Know that there are many different kinds of brokers when it comes to commercial real estate. So-called “full service” brokers represent both tenants and landlords, while there are other brokers that work exclusively with tenants. If you’re going to be a tenant, working with a tenant-exclusive broker benefits you because of their relevant and deep expertise.
Dual Agency
Make sure you try to read any disclosures for your agent. Some agents work for a dual agency. In this case, the real estate agency represents both sides of the transaction. In simpler terms, both the landlord and the tenant are simultaneously represented by the agency. You and the other party should both agree if dual agency is to be okay.
As previously discussed, successfully purchasing and managing commercial properties takes knowledge, hard work and time. It is also true that you have to keep at it. Keep studying and putting the tips into practice that you just read about. You will soon successfully buy your first commercial property.