Commercial real estate is an easy market to break into, assuming you are savvy. Prior to getting into the market, you should understand a few key things. Read this article to find out more about common tricks and mistakes you should avoid to become a successful investor.
Before purchasing any property, you should investigate its area to determine the average income level, unemployment rate and whether or not that area is growing. In addition, you want to keep in mind what else is close to the property. Any place that supplies a large number of jobs to the economy can raise the resale value of any property and make it much faster to sell if you decided to go that route. Big employers might consist of hospitals, factories, or universities.
You should expect your commercial real estate investment to require a significant time commitment. You will have to hunt for a good opportunity, and once you have bought property, you might have to do some repairs or remodel it. Don’t throw in the towel because the process is taking too long to complete. Later, you’ll be rewarded for the time and money you have invested.
When you are buying or selling commercial real estate, always negotiate. Ensure that your voice is heard, and that you are offering-or receiving-a price that is fair for both parties.
When selecting a broker, find out the amount of experience they have with the commercial market. Be sure that they specialize in the area that you are buying or selling in. When you find the right broker, make sure your agreement is exclusive.
Make sure you have sufficient utility to access on any commercial piece of real estate. Look for access to water, electricity, gas an a sewer or anything specific to what you intend to use this property for.
If you are thinking of selling a commercial property, your experience will be much smoother if you utilize the services of a professional and have it properly inspected. This way you can make sure it is prepared in advance of a sale, and if any problems arise during the inspection you can take care of it on the front end.
Get the credentials of any person who will be doing an inspection on a property you are trying to buy. Pest removal companies should be closely checked because many non-professionals do this work. This helps avoid major post-sale problems.
Do a walk-through of each property on your short list. As you tour each property, you should bring along an experienced contractor who can offer helpful input. Set the stage for future negotiations by putting forth the preliminary proposals. Take your time and really explore your offers before you decide to buy or pass.
Always include emergency maintenance on your list of need to know things. Ask in advance who will be handling any emergencies that arise. Keep their numbers updated, and know how long it takes them to arrive on average. Develop an emergency plan for those times when disruption in your services occurs. This advance planning can save your business reputation if an emergency strikes.
Commercial real estate agents specialize in working with different types of clients. Some brokers or agents only work with tenants, while others will serve both tenants and landlords. If you hire a broker that only deals with tenants you may be better off, they are more experienced.
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. If you cover all the applicable issues, then you make it far less likely that potential tenants will default on their lease. You, of course, would not desire this to occur.
Make sure you try to read any disclosures for your agent. It is important that you realize that you may be entering a dual agency transaction. In a dual agency the Realtor represents both parties of the transaction. Dual agency occurs when the landlord and the tenant hire the same agent. Dual agency should be disclosed and both parties should agree to it.
As we stated at the top of this article, it is best to know about commercial real estate before you start looking for a property. Hopefully this article has helped prepare you for your commercial real estate venture.
Advertise the commercial property to both locals and non-locals. Don’t be mistaken by the thought that locals will be the only people interested in your sale. There are many private investors who will buy affordable priced property in any area.
“Protecting YOU Is My Passion”
– Andrew John Cocks
Real Estate Broker
PS: Have you seen these Muskoka Cottage Real Estate Listings?