Purchasing commercial real estate can be much different than purchasing a home. Read on for some tips and suggestions that will help you come out ahead.
Ask for the credentials of any professional you’re planning to hire as an inspector, and ensure they are experienced in commercial real estate. This is even more important for those who deal in pest removal, as many of them work without accreditation. This can keep you from having bigger headaches after the sale.
Make sure that the commercial real estate you want to purchase is equipped with connections to all of the utilities you’ll need. Your particular business might need additional services, such as cable, but at the minimum there should probably be sewer, water, phone, electric and gas.
You should examine the surrounding neighborhood of any commercial real estate you may be interested in. Your business might do better in affluent communities, since your prospective foot traffic has more money. If the business you run caters to a lower-income demographic, buy in an area that fits your clientele best.
Go on a tour of all potential properties. When looking at a property that you are thinking of purchasing, it’s a good idea to have a licensed contractor accompany you. Begin negotiating and the process of offers and counter offers. Prior to making any final decision, you should thoroughly go over the counteroffers you have received.
Commercial real estate agents come in different types. For example, some brokers represent landlords as well as tenants, while others only work with tenants. You reap better benefits if you hire an experienced tenant broker because the broker will ensure that you receive the best deal possible.
Dual Agencies
When searching for a real estate agent, keep their disclosures in mind so you know who they are working for. Keep an eye out for dual agencies. If so, the agent will represent both sides. This means that the agent is representing the interests of the lessor and lessee simultaneously. When it comes to dual agencies, both parties should actually agree to it and it should be disclosed.
If you are just starting out as an investor, you would be well-advised to work on just one investment deal at a time. Select the type of property upon which you wish to focus, and pay close attention to your dealings. It is far better to dominate one area of the commercial real estate market than to spread your investing order many different types of commercial buildings.
When you are considering a broker, ask them what their visions of success and failure entail. Ask them how their results are measured. You should feel comfortable with their explanation of the strategies and methods they use. Choose a broker who matches you in all of the answers they give, be it the same strategies or complementary ones.
You should ask the real estate firm about how they acquire their assets before agreeing to do business with them. Legitimate brokers won’t mind answering this type of question openly and honestly. Ask the broker to explain how making sales benefits his firm and compare the way it benefits him to the way it benefits you. Make sure you understand how they are going to benefit from the transaction that they will take care of for you.
Always ensure that the areas around your property are well taken care of. Should a problem with environmental waste ever occur, it is your obligation to properly clean your building and property. Are you considering a property that is in a flood zone? Think over your options again. There are companies that will do environmental studies to evaluate the risk of incremental hazards in the area that the property is located in.
Commercial Real
Now you have learned the basics of commercial real estate investment and a few helpful tips. Hopefully after reading this article, you have learned everything you need to know about commercial real estate.