Commercial real estate isn’t quite as challenging as it might seem. You need to make sure you know information about the property before you make a move on it. In the following paragraphs, you’ll find some suggestions that will help make the experience you have with commercial real estate a positive one.
Never be afraid to negotiate, no matter which side of the table you are on. It is important that your concerns and opinions are heard and recognized by the other parties; you must always put forth the effort to ensure fair pricing for the commercial 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 centrally located near universities and hospitals will have a consistently higher value, and it will sell more quickly.
You should take digital photos of the condition. Each photograph should clearly depict the point of contention, whether that happens to be a stain, hole or other problem.
If you are renting or leasing, pest control is important to look at. In some areas, in particular in areas with known populations of pests, this is a very important concern.
If you are hesitating between different properties, buy the larger of the two. It’s just as difficult to obtain adequate financing for a 10 unit apartment complex as it is for a 20 unit building. This just reflects the general advantage of buying anything in bulk; when you buy a property with more units, you get a lower average price for each one.
You should thoroughly look into the brokers that you are considering, and determine their level of expertise and experience when dealing with commercial real estate. Make sure they are specializing in the desired area that you’re selling or buying in. Make sure your agreement to work with that broker is exclusive.
List your real estate at a realistic price. There are a lot of uncertainties which can have a huge impact on the price of your lot.
When you are shopping for a commercial property, be sure to confirm that you will have access to utilities. You will need access to electricity, water, sewer and maybe gas in addition to any unique need that your business has.
Make sure that the advertisements for your commercial real estate reach both local and non-local audiences. It is a mistake to think that only people in the immediate area will have an interest in your property. Many investors will consider purchasing a property outside their own region if the price is right.
Determine your business goals before you start your hunt for commercial property. Take the time to outline what your needs may be, from number of rooms to types of spaces needed. This should include the appropriate number of washrooms based on people present.
You should always know how to get in touch with emergency maintenance. Inquire with your landlord about who handles the emergency repairs in the space you rent. Have their phone number handy and know how long it will take them to arrive in an emergency. Take advantage of this information to devise a contingency plan in order to prevent and respond to customer complaints resulting from maintenance issues.
Different commercial brokers represent different parties. A full service broker works with both the tenants and the landlord. Some agents represent only the tenants. Brokers who work only with tenants have more experience with representing them well.
You need plenty of info before you begin your commercial real estate adventure. The sole purpose of this guide was to give you information that can grant you success when you invest in commercial real estate.