Tag Archives: dual agency

Address Many Common Commercial Real Estate Problems With These Easy Tips

In most cases, commercial properties has a lot more potential for profits when compared to a residential property. Finding good opportunities can be quite difficult, however. This article contains information to help you figure out what you need to know to make wise commercial real estate decisions.

When you are picking a broker, make sure you know if they are experienced within the commercial real estate market. Look for brokers who specialize in commercial real estate. Then if they meet the criteria you are looking for, you can agree to work with that broker exclusively.

Make sure that any property you’re considering purchasing has access to all the utilities you’ll need. Water and sewer access will be needed in addition to electricity. You may want the option to use natural gas, as well.

Local Buyers

Make sure that you explicitly welcome both local and non-local buyers when you sell a piece of commercial property. 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. In many cases, a private investor will be interested in a property even if it’s not in their area, so long as its price is a good one.

Plan on doing some improvements to your new commercial space before you can inhabit it. It may simply be cosmetic issues that need addressing, such as a fresh coat of paint or some furniture rearrangement. You may even need to tear a wall down to make the floor plan fit your needs. Remind the landlord that these improvements are necessary, and use them to negotiate a lower deposit or reduced rent.

There are different types of commercial real estate brokers. Full service brokers work with both landlords and tenants and there are agents representing tenants only. Your needs will be served better if you choose the right broker for your own personal needs. If you are looking for one who knows the issues that are relevant to tenants, then choose a broker who has the most experience dealing with tenants.

Dual Agency

Scrutinize any disclosures made by a real estate agent whom you intend to hire. There is a possibility of a condition called dual agency. Your real estate agency will represent each side of the transaction. In effect, while you are paying the agency, they also work for the opposite side; if you are a prospective tenant, for example, the dual agency represents the landlord, as well. It should be disclosed if there’s a dual agency, along with an agreement by both parties.

Regarding commercial loans, it is the borrower’s responsibility to obtain an appraisal. The bank will disallow any appraisals ordered by other people. So, cover all your tracks and make sure you are the one who orders the appraisal.

Property Type

When starting out in property investment, it is in your best interest to stay focused on one property type at a time. Find one property type to focus on and devote your undivided attention to it. Generally speaking, you’ll maximize your profit if you first become an expert in a single property type rather than a dabbler in many.

Now you have the basics of investment in commercial real estate under your belt. Make sure you are flexible so that you can always be informed and know what to do in any type of situation. If you do this, you’ll develop an eye for deals that others might pass over, which will make you lots of money over time.

The Following Information Will Help You When Buying Commercial Property

Establishing oneself in the market for commercial real estate need not be a major challenge. You need to have a basic knowledge base in place before you start to do anything involving investing in actual property. The following tips and tricks will give you the best and most profitable experience.

Take photographs of the property. Be sure that you have any and all defects present on the pictures you take (things like holes, discoloration, or spots).

Real Estate

Be calm and patient when looking at commercial real estate. Don’t enter into a commercial venture hastily. You might regret it if you are not satisfied with your real estate goals. You should be prepared to wait an entire year before a worthy investment becomes available to you.

Before you consider leasing or renting, look into whether or not pest control is covered in the lease. Look over your rental or lease agreement, and know if you are covered, especially if you live in an area with known infestations.

Real Estate

Do some research on the internet to learn more about real estate and investing, whether you have a lot of experience already or are completely green on the matter. You can never know too much when it comes to commercial real estate, so never stop looking for ways to obtain more information!

One of the most critical considerations for valuing a commercial property is its physical location. Take into consideration the class level of the neighborhood, other commercial properties surrounding it, and accessibility. Check out the growth, both economically and physically, in the areas you’re considering. Make sure that the area will still be nice and growing in several years.

When choosing between two different types of commercial properties, it’s best to look at things on a bigger scale. Getting adequate financing is very important in undertaking an investment that pertains to a ten or twenty unit apartment complex. Think of it like purchasing in bulk; as you buy more, each individual unit costs less.

When choosing a broker, ask about their experience specifically in the commercial real estate market. Make sure that their particular business focus includes what you are interested in. When you find the right broker, make sure your agreement is exclusive.

Learn about Net Operating Income, or NOI, a metric in commercial real estate. Staying in the positive is what you need to do to succeed.

Contact Information

It’s critical to have emergency maintenance contact information very accessible. Be sure to find out who takes care of maintenance in the building and also who handles emergency repair situations. Be aware of the response time of emergency personnel, and be sure to have their contact information handy. Use any information you can get from your landlord so contingencies are ready for the times your normal business operations are interrupted so you can safeguard your customer service and your reputation.

If you are thinking about hiring any real estate professional, read over all their disclosures. Try to beware of dual agency. Dual agency in real estate is when the agency works for both parties. In effect, while you are paying the agency, they also work for the opposite side; if you are a prospective tenant, for example, the dual agency represents the landlord, as well. If there is a dual agency, everyone should be honest about it and find an agreement.

Don’t feel scared to investigate your broker’s personality! For example, ask them what they consider to be success, and what constitutes failure. Find out what criteria they use to determine their results. Be certain you have a clear understandings of the strategies the broker uses. You and your broker need to agree on these ideas and how to make them work.

Learn how each real estate broker intends to get you the best price before settling on one. Ask how they were trained and how much experience they have. You should also make sure that they use ethical methods and know how to get the best deals. Go ahead and ask them for examples of any past negotiations, including those that were successful and those that were failures.

Real Estate

You must have the knowledge it takes to make sound decisions when it comes to commercial real estate purchases. The above advice should put you on the right track when it comes to working the real estate market efficiently.

Getting Needed Help With Commercial Real Estate

A lot of people have found success by dealing with commercial real estate. There really is no magic to it. What you will need is industry familiarity, actual experience, and a significant amount of serious effort. Keep reading for tips on how to successfully invest in and manage commercial properties.

As with other property purchases, pay attention to the three Ls: location, location, and location. Think over the community a property is located in. Check out the growth, both economically and physically, in the areas you’re considering. You want to make sure that in 5 or 10 years down the road, the area is still a descent and growing area.

In the beginning, you may find it necessary to spend a great deal of time handling your investment. Although the investment might be a tremendous opportunity, it will only be good if you take care of any repairs or perhaps do a bit of remodeling. You should never give up because it is time consuming. The investment will be repaid as time goes on.

There are many things to consider when determining the best option between two commercial properties. When choosing between the two, think big! Financing may be no more difficult for the large apartment building than the small one. You may have a better price, figured per unit, on the larger apartment complex than on the smaller one.

You need to make sure that the price you are asking for your real estate is a realistic price. There are a number of variables that can affect the realistic value of your property.

You have to think seriously about the neighborhood where a piece of commercial real estate is located. Buying property in an affluent neighborhood is likely to mean that any business which opens there will be successful thanks to having a clientele with a large disposable income. Or if your services are for the less wealthy, purchase in this type of area.

Real Estate

Before hiring any real estate broker, read all of his disclosures. There is a possibility of a condition called dual agency. Your real estate agency will represent each side of the transaction. In effect, while you are paying the agency, they also work for the opposite side; if you are a prospective tenant, for example, the dual agency represents the landlord, as well. The fact that the agent is representing both parties must be disclosed to everyone involved and those parties must sign off on it.

If you are new to commercial real estate investing, it would be wise to focus on just one building at a time. Select the type of property upon which you wish to focus, and pay close attention to your dealings. It is preferred to excel in one type instead of being mediocre in many types.

While success is never guaranteed in any real estate venture, with the right knowledge you can greatly enhance your chances of success when buying and managing commercial properties. Keep this information in mind and apply it to your business. Try to educate yourself at all times. By being more experienced, you will ultimately become more successful.

Make An Income From Commercial Real Estate

Commercial real estate is a double edged sword. It can bring you huge profits, but it can also take away that profit away from you. Choose the property you want to purchase wisely and how to obtain funds to do it. The information from this article should shed some light on the fundamentals of commercial real estate.

Regardless of whether you are buying or selling the property, it is in your best interest to negotiate. Protect your interests by standing up for yourself regardless of who is on the other side of the table. Negotiate a fair price rather than accepting one that is too high or too low.

Pest control is an important issue to look at when you rent or lease. This is especially important when an area is known to have pest and rodent problems. Prior to signing a lease, ask your agent what the current pest control policies are.

Buying commercial property takes more time, and the process is far more labyrinthine, than buying a house. Understand, however, that this additional time and effort often translates into higher returns.

Research and learn more about the Net Operating Income, a commonly used metric for commercial real estate. In order to succeed, you should focus on keeping your figures in the positive.

Keep letters of intent simple by tackling large issues before sweating the small stuff. 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. Be sure to take the initial proposal responses, but do not proceed without making the property owners aware of what is going on. There is nothing wrong with hinting that you have other properties in mind. It could even get you a good deal.

Dual Agency

If the agent you are thinking of hiring for your commercial real estate transaction gives you any disclosure forms, make sure you read them carefully. Remember that dual agency is also an option. Your real estate agency will represent each side of the transaction. In other words, the agency represents the landlord and the tenant simultaneously. If there is a dual agency, everyone should be honest about it and find an agreement.

Don’t feel scared to investigate your broker’s personality! For example, ask them what they consider to be success, and what constitutes failure. Ask about their methods for gathering and interpreting results. Keep asking questions until the broker’s strategies are clear to you. You need to understand what these strategies are so that you can evaluate if you are comfortable with them. You should only partner up with a broker if there is common ground in your shared beliefs and thinking.

Before you make a decision on which real estate broker to use, see how they negotiate. Know what sort of education and background they have. You can also double check that their methods are ethical, and that they have success in finding and negotiating the optimum deals. Ask for examples of successful and unsuccessful past negotiations.

When shopping for an honest brokerage, ask the representative how the company makes money. Honest brokers will be open about this, so you can tell if your interests will be at odds. Find out how your broker will benefit form the transaction you want them to work on for you.

Properties, like people, have finite life spans. It’s important to be aware of this. You have the potential of making a huge mistake by ignoring the fact that you might have to spend money in order to maintain the property. Your building may need a new roof, or updates to the plumbing or electrical systems. Every building goes through a phase like this, but some do more than others. Have long-term plans for handling these repairs.

Clearly, investing in commercial real estate will not bring you money for nothing. You will need to put in enough time, work, and have a lot of money to invest to be successful. That, though, is still not a guarantee that you will make money, and you could possibly still lose money.

Need Advice On Commercial Real Estate? Check Out These Tips!

While purchasing a commercial property is extremely exciting, running and maintaining that property will require a great deal of effort. This can leave you wondering where to even begin to get things taken care of. It can be challenging to learn all you must know regarding ownership of commercial property, but the tips in this article can help you on the road to acquiring and owning commercial property.

Take photos with a digital camera. Make certain your photos highlight specific defects such as carpet spots, wall holes and bathroom discolorations.

Pest Control

You should know what kind of pest control services are available to you when renting or leasing. Talk about pest control with your agent if the area is known for rodents and bugs.

If you are trying to choose between two good commercial properties, think big. Getting the proper financing is going to the same hassle for a retail building with ten outlets as it would be for a retail property with twenty or even thirty units. The concept here is the same as any other situation where you are purchasing multiple things. The more you purchase, the less you will pay for each unit.

Even though you may be running a business and ultimately need to secure profits, it’s important that you don’t embellish prices in an attempt to get an extra dollar. There are a number of variables that can affect the realistic value of your property.

You should think about what neighborhood you are going to buy the commercial real estate in. Expensive, luxury-oriented businesses will thrive in more affluent neighborhoods. 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 a professional inspector look at your property before selling it. If the inspector finds any problems, you should attend to them promptly.

Visit the commercial real estate properties that you are interested in. When looking at a property that you are thinking of purchasing, it’s a good idea to have a licensed contractor accompany you. Set the stage for future negotiations by putting forth the preliminary proposals. Judge the counteroffers prior to making a decision either way.

Dual Agency

If the agent you are thinking of hiring for your commercial real estate transaction gives you any disclosure forms, make sure you read them carefully. Make sure you understand the potential for the existence of dual agency. In this situation, the agent will represent the buyer and seller. In other words, the agency is working for both tenant and landlord simultaneously. Dual agency must be disclosed by both parties and they need to agree to it.

The borrower of a commercial loan is the one that orders the appraisal. The bank won’t let you make use of it later. So, to ensure that things are done properly, order the document yourself.

Consider all of the tax benefits when planning on commercial property investment. Depreciation benefits and interest reductions are given to investors in commercial real estate. However, investors sometimes receive “phantom income”, which is income that is taxed, but not received as cash. Before investing, become more familiar with this sort of income.

As is evident by this article, any good investment in commercial real estate requires solid research and a lot of hard work. It’s also truth that you must be persistent. Keeping the above tips in mind can help you own some great commercial property.

Making Money In Commercial Real Estate

Commercial real estate is accessible to anyone. However, there are some things you need to know before you jump into the market. The following advice will educate you in the ways of commercial real estate, so you can maximize your opportunities.

If you are trying to choose between two desirable commercial purchases, the larger one may be the better choice. Regardless of whether the property you decide on has twenty units or fifty, the process of obtaining financing will be the same, and in both cases will require substantial effort. In effect, this is similar to an economy of scale, or also like purchasing more of an item to save money.

When selecting a broker, find out the amount of experience they have with the commercial market. Make sure they have their own expertise in the area of your curiosity or it could be an endeavor wasted. Entering into an exclusive contract with that particular broker is a good idea.

Commercial rental buildings should feature sturdy construction and simple details. Tenants are more likely to move in when they know the property is well taken care of. Buildings like these are also easier to maintain, for both owners and tenants, since repairs are going to be required less frequently.

Strive to keep your commercial properties occupied at all times if you choose to rent them to tenants. If there is still open space, it will be incumbent upon you to pay for maintenance. If you have several properties open, you should ask yourself why, and attempt to correct the issues that may be driving out your tenants.

Check a commercial property for access to electricity and other utilities; make sure there is good access. Every business has unique requirements, but for most, electric, water and sewer access will be required.

Aim to avoid default before you sign a real estate lease. If you cover all the applicable issues, then you make it far less likely that potential tenants will default on their lease. You do not want this to happen to you.

Always have an inspector look over your commercial property before you put it out on the market. If they flag issues that need to be fixed, repair them before you list the property for sale.

Go on a tour of all potential properties. It’s a good idea to hire a building contractor to come with you and do on-the-spot inspections of properties you are considering. Make the preliminary proposals, and open the negotiating table. Carefully look over any counteroffers you receive before you make your final choice, whatever that may be.

Smaller Issues

Keep your focus on the largest issues when writing your letters of intent. Keep it simple and save the smaller issues for later in the negations. You can make all your negotiations less tense, so you can agree on any of the smaller issues first.

You should acquire tour site checklists when you’re examining several properties. Get the responses from the first round of proposals, but make sure the property owners are aware of this before proceeding. Do not fear letting the owners know that you are interested in other properties. It could even get you a good deal.

You may have to make some repairs or improvements to your property before you can move in. This might include superficial improvements such as repainting a wall or arranging the furniture more efficiently. Many times, changes include reconfiguring the floor plan by moving walls. Negotiate payment for these improvements ahead of time, and attempt to have the landlord pay at least part of the costs.

Real Estate

When hiring a real estate agent, read the disclosures completely before signing a contract with a realtor. Dual agency is a possibility that you need to be aware of. In this type of transaction, a real estate agency acts on behalf of both parties involved in the deal. In the case of a rental situation, the agency represents the landlord and the tenant. You and the other party should both agree if dual agency is to be okay.

Again, you can’t invest in commercial real estate until you have done some research and learned about the process. The purpose of the article was to give you information to help you on your quest for success with commercial real estate.

Confused By The Commercial Real Estate Market? Read This Advice!

There are always industrial and commercial properties, but these types of properties do not receive preferential listings that are given to residential property. This market requires a different set of skills in order to be successful, and with the following tips, you will be able to navigate it properly.

You should expect your commercial real estate investment to require a significant time commitment. It takes time to find a lucrative opportunity and purchase a propriety, adding to that time to carry out any repairs and alterations that are needed. Do not give up because this process takes too much of your time. Once you get the property ready, you will be compensated for years to come.

Double-check that you are seeking a realistic amount of money for your property. Market conditions can vary greatly; therefore, an appraisal may not be the best indicator of true market value.

Make sure that the commercial property has access to all utilities needed. You will need access to electricity, water, sewer and maybe gas in addition to any unique need that your business has.

When you are looking at a commercial property, be sure to look at the neighborhood, too. If you are looking in a high-rent neighborhood, you may have a better chance at success once you get going because of the potential of area residents to have money to spend. On the other hand, if you are going to offer a product or service more popular with working class individuals, a less affluent neighborhood might be a better choice.

If you are thinking of selling a commercial property, your experience will be much smoother if you utilize the services of a professional and have it properly inspected. Fix all problems that they find as soon as possible.

Take a tour of properties you are considering. Definitely consider having a professional contractor go with you when looking at potential properties. You can then make an initial offer and begin the bargaining phase. Evaluate counteroffers against the information you collected on your tours, and use that information to justify your own counteroffers.

Get a site checklist if you are viewing more than one property. After you collect your first proposals from all the property owners, let them all know that you’re looking at other properties before you make your decision. Don’t be shy about telling the owners that you are thinking about purchasing another property. This could help you score a better deal.

Dual Agency

Before hiring any real estate broker, read all of his disclosures. Dual agency is a possibility that you need to be aware of. Dual agency refers to a situation in which a real estate agent represents both the landlord and the tenant in a commercial transaction. The real estate agency will represent both the seller and the buyer. If there is a dual agency, everyone should be honest about it and find an agreement.

The borrower needs to order an appraisal for a commercial loan. Your bank will refuse the appraisal if you try to submit it. Be properly prepared by ordering the appraisal directly.

Speak to a tax adviser prior to buying a property. A tax adviser can tell you what your tax liabilities are on the purchase and future income from it. Work closely with your lawyer to find a place where you can buy property and your taxes will cost less.

Finding the appropriate kind of commercial property is only the first half of your work here. Gaining even a little bit of knowledge about commercial real estate helps you make better decisions.

Getting Some Great Tips About Commercial Real Estate

Investing in commercial real estate is a great way to earn significant profits. It’s not for everyone though because of the huge investments and stakes.

Be sure to negotiate on the fact of what you are, the seller or buyer. Make your voice heard and strive for fair market value pricing.

Buying commercial properties requires plenty of perseverance and calmness. Don’t jump into any investment without doing your research. Without due consideration, you might find that the real estate purchase does not meet your criteria for successful financial gain. Stay patient; it could take a year or more for the perfect property to materialize.

Location is just as important with commercial real estate as it is with residential properties. You will want to consider many things, including the neighborhood that the property is located in. Also review the expected growth of other similar communities. Since you will likely still own the property in ten years, you want it to be located in an area that is likewise still desirable in ten years.

Purchasing commercial properties is more time-consuming and complex compared to the purchase of a home. But, you should realize that the nature of such deals is critical to maximizing the profit potential of a prospective property.

If you are selecting a broker, ascertain the amount of experience they have had within the commercial real estate market. Make sure you know that they actually specialize within the area you plan on selling and buying. Once you’ve determined the broker is right for your needs, make sure any agreement into which you enter is an exclusive one.

Educate yourself on the meaning of net operating income (NOI), a term associated with commercial real estate used for investment purposes. Having positive numbers is the only way to ensure success.

Inspections are necessary before buying any piece of real estate. When arranging an inspection, be sure to check both credentials and reputation before hiring an inspector. This guideline is especially important when working with people who deal in pest management; these specific fields are often populated by practitioners who lack proper credentials. Ultimately, this can help you to bypass larger, more expensive problems.

Do your best to have your properties occupied at all times. If you’ve got open spaces, then the person will end up paying for maintenance and upkeep. You need to ask yourself why properties are not getting rented and fix any issues you discover.

Keep letters of intent simple by tackling large issues before sweating the small stuff. The initial negotiations will be less tense and the smaller issues will seem less important later.

Commercial real estate agents specialize in working with different types of clients. For example, some brokers represent landlords as well as tenants, while others only work with tenants. You may benefit significantly better from hiring the services of a broker working with tenants exclusively, as he has significantly more experience representing tenants successfully.

Dual Agency

Check all disclosures of the chosen real estate agent that you wish to work with. Remember that a dual agency could occur. If so, the agent will represent both sides. Or, for short, the agent is looking out for both parties’ interests. If dual agency is the case, it should be out in the open and both the landlord and the tenant should be in agreement with the arrangement.

Commercial real estate may make you major profits. Commercial properties require very large down payments, and it is crucial that you do your research to ensure you secure the best possible deal. This articles discusses ways to increase your chances of success.

Great Commercial Real Estate Tips That Can Save You Money!

Unless you already know where to start, locating the right kind of commercial property for your new business can be hard. Read this article to acquire a good groundwork of information that will help you get off on the right foot.

Negotiate, whether you’re the seller or the buyer. Be certain your needs are met, your concerns are heard, and you champion a fair, honest price for the real estate.

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. Your house will sell more quickly and at a higher value if it is near a university, hospital or any large employment center.

Bring your digital camera along, and use it. In the “before” photos, especially, make sure that the pictures clearly show defects such as stains on the carpet, discolorations in the tub and sink, and holes in the walls.

Take some time to visit websites that are devoted to commercial real estate. These sites have lots of information for both new investors and seasoned professionals. No one can ever honestly claim that they know too much.

When interviewing potential brokers, ask them to tell you about their experience level with the type of commercial investments you are interested in. Make sure that the agent has the proper expertise with the type of real estate purchase or sale you are looking for. Once you’ve determined the broker is right for your needs, make sure any agreement into which you enter is an exclusive one.

If your property deal requires inspections (as it should), look at the inspector’s credentials. There are more than a few people working in without certification in the pest removal and insect fields, so make especially certain to ask for proof of certification from them. You want to avoid a future liability that can come after the sale, if the inspection was not correct.

If you have the intention of offering your commercial real estate for rent, look for buildings that are simple and solid in construction. Tenants will be attracted to these spots because they are maintained well. They are also easier to keep in good repair and require less repairs, which will save you and your tenants money over time.

Have your property inspected before you list it for sale. You can fix any problems right away so you have the best available property.

Real Estate

You need to advertise that your commercial property is for sale to both locally and non-local people. 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 prefer to purchase reasonably-priced real estate that is not local to where they reside.

In commercial real estate, there are different kind of brokers. There are agents who only represent tenants and there are full-service brokers who work with both tenants and landlords. You reap better benefits if you hire an experienced tenant broker because the broker will ensure that you receive the best deal possible.

Dual Agency

Read the fine print about your real estate agent. It is important that you realize that you may be entering a dual agency transaction. In this case, the agent is two-faced: she is representing both parties to the transaction. In other words, the agency represents the landlord and the tenant simultaneously. It should be disclosed if there’s a dual agency, along with an agreement by both parties.

The borrower needs to order an appraisal for a commercial loan. Banks will not allow them to be used later. Order it yourself to ensure everything goes as planned.

Interview your prospective real estate broker to determine what they view as failures and successes, to see if their standards match yours. Ask them to define their results measurements and how they determine it. Make certain that you comprehend their strategies and techniques. Make sure you agree with the values, principles, and strategies of the real estate broker you choose.

This article discussed useful methods that you should keep in mind when you are going to buy or sell commercial property. Use this advice to remain informed.

Check This Info Before Buying Commercial Property

Purchasing a piece of commercial real estate is a huge investment. You probably have tons of questions and don’t know where to find the answers. That’s why this article is here. The following tips are a useful guide to anyone interested in commercial real estate, and should help to see that your endeavor is worthwhile.

If you trying to choose between two or more potential properties, it’s good to think bigger in terms of perspective. Finding adequate financing on a piece of property takes time and patience. This works in the same way as buying bulk items from Costco. You buy large numbers of items to pay less per item.

Always check the credentials of the inspectors you hire. This should be especially noted for those who work in pest removal since there are actually a number of non-licensed people who work in this area. This will avoid bigger problems in the post-sale.

If you are purchasing commercial real estate for rental purposes, look for structures that are uncomplicated and sturdily built. Because it is apparent that these types of structures have been kept in good condition, it greatly increases the chances that tenants will be quick to rent the space. Because these properties are in great condition, the property owners and the occupants will have a simpler time with basic maintenance service.

If you are renting out your property, be sure that they are always occupied. Having unoccupied spaces mean that you have to pay for their upkeep. If occupancy is low, you may want to see if something is wrong with your property, and if there is, fix it.

The neighborhood where the property is located is very important. In general, it’s better to locate a business in a richer area because rich customers obviously have more discretionary income. On the other hand, if you are going to offer a product or service more popular with working class individuals, a less affluent neighborhood might be a better choice.

If you are negotiating a commercial lease, make sure nothing can be considered as events of default. If you cover all the applicable issues, then you make it far less likely that potential tenants will default on their lease. This type of situation is considered very undesirable.

Establish what you need before searching in commercial real estate. List all of the features that are necessary for your operations, such as the overall size requirements for your rooms and amount of restrooms required.

Dual Agency

Ensure your legal and financial safety by thoroughly examining the disclosures of a potential real estate agent. It is important that you realize that you may be entering a dual agency transaction. Dual agency refers to a situation in which a real estate agent represents both the landlord and the tenant in a commercial transaction. This means that the agent is representing the interests of the lessor and lessee simultaneously. It should be disclosed if there’s a dual agency, along with an agreement by both parties.

Now you are better informed about commercial real estate. You’re ready now, more than ever! Use these commercial real estate insights and guidelines to improve your successes in the market.