Commercial property is a hard and time-consuming investment. It’s equally true, though, that the potential for significant return on investment is very attractive. Take note of the following advice, written especially for those with an interest in commercial real estate.
You should negotiate if you are the seller or the buyer. Make your voice heard and strive for fair market value pricing.
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. Property that is located near a large business, a college, or a hospital has better resale value and will often sell easier.
Bugs and rodents are always looking to ruin your property, so factor pest control into your business strategy when renting commercial property. You should make inquiries regarding pest control procedures, particularly if you plan to lease somewhere that is known for insect or rodent infestations.
As with other property purchases, pay attention to the three Ls: location, location, and location. What type of neighborhood is the property in? Consider how this area is growing in comparison with similar areas in the region. You want to know that the community will still be decent and growing a decade from now.
Your investment might be very time consuming at first. The time aspect of the investment includes finding the property and making any repairs to the property. Do not let the lengthy nature of the process discourage you. The time you invest now will lead to greater rewards later.
When you are picking a broker, make sure you know if they are experienced within the commercial real estate market. It is important that their experience fall in line with your buying and/or selling goals, so make sure to ask what their specialty is. Make sure your agreement to work with that broker is exclusive.
When selling a piece of commercial property, it is wise to ensure that you ask a realistic price. There are a variety of different factors that go into determining a property’s value.
You should always request the credentials of any and all inspectors working with your real estate transaction. 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. This will avoid bigger problems in the post-sale.
Make sure you have sufficient utility to access on any commercial piece of real estate. You’ll need to have quick access to water, electricity, gas and the sewer.
When you are constructing a letter of intent, make sure that you keep it concise by focusing on larger issues first. Save the smaller issues for future negotiations. 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 hunting among multiple properties, make a checklist for touring sites. Take initial personal responses, but don’t go further without the property owner knowing. Make sure that the owners are aware that you have other options available. The information may help you to negotiate more favorable terms on your deal.
Before you begin seeking commercial real estate property, be sure to identify your requirements. You should list the most important things that you are looking for, such as space, restrooms, conference rooms, etc.
Know how to get emergency maintenance performed on a property at a moment’s notice. Talk to the building’s landlord about the person who currently handles emergency repairs. It is important to keep these contact phone numbers handy and to have a good understanding of how long it will take for them to respond if needed. Use the information provided by your landlord to help you prepare a plan for when normal business is disrupted by certain events.
As previously mentioned, commercial real estate is a market with a huge potential for profit. Use the advice you have learned here so you can give yourself the best chance of success in commercial real estate.