Industrial and commercial properties are sold regularly but do not expect to see listings like you would for a regular home. You have to know where to find these properties, and this article will give you the tools you need to do just that.
If you’re a buyer or if you’re a seller, it’s important that you negotiate. Ensure that your opinion is known, and wrangle for the best price you can get on the property.
Prior to investing massive sums of money in a property, take a hard look at community income averages, as well as employment rates, and how much hiring and firing nearby businesses are doing. Properties near hospitals, universities or other centers of large numbers of employees tend to sell faster and at higher-than-average values.
Use a digital camera to document the conditions. The picture needs to show defects like carpet spots, wall holes, or discolored sinks and tubs.
Make sure that you’re not asking for an unrealistic price for your property. Many things alter the value of your property./
Take a tour of any property that you are interested in. You should consider asking an experienced professional to come with you and examine the properties you have an interest in. Use what you see in these tours to determine a fair opening offer. Give a bit of thought to the counteroffers before deciding to accept the offer, make a counteroffer yourself or walk away.
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. It will be less stressful to negotiate and can also make it easier to come to terms on the smaller things as well.
If you are viewing more than one property, you may wish to create a checklist for each site. Collect responses from everyone that offers one, but inform the property owners before you do anything else. You may want to offhandedly let the owners know that theirs is only one of a few properties in which you are currently interested. You may even get a more favorable deal!
Before you begin your search for the perfect commercial property, have a clear picture of your needs. Write down the things you like about the property, important features are office numbers, how many conference rooms, restrooms, and how big it is.
It may be necessary to invest in some renovations before you can move into the space. Cosmetic changes like painting walls and rearranging furniture might be needed. The change could be significant like moving an entire wall to work with a new floor plan. Talk to your landlord about these improvements. Try to negotiate a deal where the landlord pays for some, if not all, of the cost of improving your space prior to moving in.
You need to know the details of emergency maintenance procedures. One way to develop such a list is to ask current commercial investors who they use in the event of an emergency repair. Be sure to have emergency numbers on hand, and remember to check about a quoted response time for maintenance emergencies. Your landlord should be able to provide you a list of emergency contacts so that you can map out a safe and well organized emergency plan, in case an emergency happens during normal business hours.
It’s up to the borrower, that’s you, to order an appraisal for a commercial loan. The bank will disallow any appraisals ordered by other people. Spare yourself further hassle by initiating the request yourself.
Assess your broker by discussing what they see as a successful transaction or, on the other hand, a failed one. Your broker should be able to explain what standard they use to measure results. Be sure that you understand his techniques and approach. Then you can be sure you choose a broker who views things the same way you do.
Make sure you know what kind of environment your property is located. If your building is full of hazardous waste or otherwise constitutes a threat to the environment, you will be responsible for resolving these problems, even if a previous owner caused them. Do you want to buy property in a area that is prone to flooding? That may not be the wisest choice. There are things you can do, like contact the environmental assessment agencies, so that you can gain insight knowledge about the area you plan on investing into.
Finding the right commercial real estate property is only part of the equation. Having the proper knowledge can take you far.