Moving into the commercial property market can be a confusing experience. While it may seem that you have too many questions and not enough answers to really get started, take a deep breath and check out these pointers designed to get you on the right track. If you need help figuring out how to get started in the commercial real estate market, read the tips below.
Be sure to negotiate on the fact of what you are, the seller or buyer. Be heard and fight to get a fair property price.
When you are picking between commercial properties, think big! Whether it be a twenty or ten unit apartment complex, you want to get adequate financing to back you up. In effect, this is similar to an economy of scale, or also like purchasing more of an item to save money.
Commercial Real Estate
When choosing a broker, ask about their experience specifically in the commercial real estate market. Look for brokers who specialize in commercial real estate. You should be sure to enter into an exclusive agreement with that broker.
If you are purchasing commercial real estate for rental purposes, look for structures that are uncomplicated and sturdily built. Tenants will be eager to fill these spaces because it will be clear that they are well-maintained. These properties are also more cost effective for you and your tenants due to the fact that they only require minimal upkeep and repairs.
Make sure you’ll be able to access power, water and other utilities for your commercial property. Your particular business might need additional services, such as cable, but at the minimum there should probably be sewer, water, phone, electric and gas.
Before you enter into any negotiations for a lease on commercial real estate, attempt to decrease anything that may be thought of as a default event. This decreases the chances that the tenant will default on the lease. This type of situation is considered very undesirable.
Before making a commitment, you should request tours of any potential properties. Think about having a contractor as a companion to help evaluate the property. Once that is done, you can submit your proposal and begin negotiations. Judge the counteroffers prior to making a decision either way.
When viewing multiple properties, be sure to get a checklist from the tour site. Get the responses from the first round of proposals, but make sure the property owners are aware of this before proceeding. You should not have any hangups about letting the owners know that you are still deciding on other properties. It could help you get a better deal.
The commercial space you want to rent may need some changes before you can move in. In some cases, these may be minor changes, such as a new coat of paint for the walls or a new arrangement of furniture. In many cases, it may be necessary to move walls or rearrange a floor plan. Plan on negotiations with the owner of the property to see if all, or part, of the costs can be covered by said owner.
It is essential to develop a list of emergency maintenance service providers. Find out from your landlord who to contact for emergency repairs, such as plumbing accidents. Keep the contact numbers handy, and ask them in advance what their response time is. 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.
You can find different kinds of brokers. Some are full service brokers, and they work on behalf of landlords and tenants. Others are agents who represent only tenants. Consider hiring a broker who only works with tenants. This type of broker may have more experience with helping tenants successfully enter the commercial real estate market.
Commercial Real Estate
Armed with these tips, you are ready to step into the world of commercial real estate. If you thought yourself ready prior to this article, think about what you know now! These tips will provide you with new ways to get started, and enhance your current commercial real estate system so you can increase your results.