Purchasing commercial real estate is vastly different from purchasing a residential property. The following article will help you understand how the commercial market works.
Take plenty of pictures of the building. Make sure the picture shows the defects (such as spots on the carpet, holes on the wall or discoloration on the sink or bathtub).
If you are renting or leasing, be sure to know about pest control arrangements. It is a good idea to consult your rental agent for information on pest control policies, especially if the area your property is located in is known for a high population of insects and rodents.
Location is just as important with commercial real estate as it is with residential properties. What type of neighborhood is the property in? Don’t forget to check out similar areas as well, in order to see how other neighborhoods are growing economically. By calculating growth in similar areas, you will be able to ascertain whether the piece of property you are looking at is going to continue growing.
Take note that commercial transactions take more time, they are complex and they take more involvement than home purchases are. If you want things made easier, you might want to change what you’re getting yourself into. Yet, you should realize that the extra focus on, and length of, the process is essential in order to gain a better return on the investment.
If you are hesitating between different properties, buy the larger of the two. Getting the financing you need is a difficult thing, regardless of the size of the property. However, buying several units will cause the price of an individual unit to decrease.
Do not hire a broker without finding out more about their past experience within commercial property. Make sure they are specializing in the desired area that you’re selling or buying in. Sign an exclusive agreement once you’ve found a broker you want to work with.
You need to make sure that the price you are asking for your real estate is a realistic price. A wide variety of factors exist that influence how valuable your lot actually is.
The neighborhood where the property is located is very important. If the property is located in a prosperous area, your business is more likely to succeed because your potential customer base is going to be wealthier. However, if your products or services cater more to those with less funding, consider a location in a neighborhood that fits your potential clientele.
Get your commercial property inspected before you try to sell it. You should consult with them and see if anything needs to be repaired; if it does go ahead and fix that as soon as possible.
If you want to sell a property, advertise it locally and on a wider level too. A lot of people do not think that people from out of town will want to buy their commercial real estate. Private investors will purchase properties outside of their area if the prices are low enough.
Do a walk-through of each property on your short list. Bring a contractor along so that you don’t forget to inspect any important features. Start the negotiations, and make the necessary preliminary proposals. Before making any commitment, you should carefully evaluate each offer and counteroffer.
Write an easy-to-understand letter of intent, focusing on the biggest issues. You can worry about the little things later on. This lets you get the bigger issues out of the way first and makes small issues simpler to complete.
When you are looking at multiple properties, get a tour site checklist. Do not proceed past initial proposal responses, unless you inform the property owners. Don’t be shy about telling the owners that you are thinking about purchasing another property. This may provide you with more room for negotiation.
Emergency maintenance should always be on your need to know list. Ask your landlord who is in charge emergency maintenance requests for the building. Know the phone numbers, and be aware of their response time. Work with your landlord to create a contingency plan in the event that an unforeseen disaster occurs; this will allow you to avoid customer service or public relations nightmares.
Be aware that not all commercial brokers are alike. Choose the real estate broker who will best help you meet your needs. Some agents will represent only the tenant while a full service broker will represent both parties. 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.
Build an online presence for yourself prior to stepping into the commercial real estate world. Make a LinkedIn profile or personal website. You should also utilize search engine optimization techniques to boost the search rank of your website. The idea is for people to learn about you by just entering your name into a search field.
Create an informative commercial real estate blog, or network with industry professionals on sites like Twitter or Facebook. Don’t just fall off the face of the earth once you seal a deal.
In conclusion, you must consider many different things when you are going to make a commercial real estate purchase. Be certain that you apply the advice from the preceding paragraphs to get fair deals that meet your needs and expectations of the property you deal with.