Any newcomer to the commercial real estate market can benefit from a compilation of hints and tips on the most effective ways to purchase or sell commercial property. This article is a perfect place to learn some tips to help you build yourself from novice to master of the commercial real estate game.
You need to make sure that the price you are asking for your real estate is a realistic price. There are a number of variables that can affect the realistic value of your property.
Look into any potential environmental problems before you buy. Hazardous waste materials emitted from property can be a real headache for property owners, so identify the problems before they start with a thorough inspection. Regardless of whether the previous owner did what she was supposed to do, once you buy the property you’re responsible for following hazardous waste and other environmental regulations. You may have to make expensive repairs to resolve an environmental problem.
Standard release forms are not something you should rush to sign. Large real estate companies have been known to hide clauses that are not advantageous to you in their very long, and complicated, leases. By reading the document carefully, you can avoid the potential pain a standard commercial lease could cause.
Pest Control
If you are looking to lease or rent, the issue of pest control is a critical one to address. It is even more important to look into the building’s pest control policies if you are looking to rent or lease in a region where building pests are common.
Whether buying or selling, negotiate. Be heard and fight to get a fair property price.
When you are looking to buy or sell commercial property, don’t forget to leverage your network of contacts. Because properties may be sold without ever being listed, you increase your chances of becoming part of these opportunities if you have networked with the appropriate people.
Before negotiating a lease with a commercial tenant, work on narrowing down the list of things that would constitute default. This decreases the chances that the tenant will default on the lease. You definitely don’t want this to occur.
Commercial Property
Write down your goals before you start to search out the perfect commercial property. What are you plans for the property, your own business or leasing it? Be sure that you have goals that are specific and clear when you look for commercial property, as this can save you plenty of effort and time.
Calm and patience are both sound practices when you are searching for commercial property. Do not make impulsive decisions. You are at risk of making poor decisions when rushing into things, and if your property investment does not work out, you will regret it. You should be prepared to wait an entire year before a worthy investment becomes available to you.
Be certain the commercial property you are considering has good utilities access. Your business is sure to have unique utility requirements, but services typically required by most include sewage, water, power, telecommunications and maybe even natural gas.
If you are investing in commercial properties, keep an eye out for any possibilities of buying bigger. Managing units of larger sizes is not actually that different than smaller ones, and can realistically cost you less money.
You may need to make some changes to the commercial space you just rented before moving in. These changes could simply be cosmetic ones as simple as a new coat of paint or moving the furniture around. Normally, however, it may be something a little more involved like walls being moved. The contract you negotiate should clearly spell out whether you or your landlord will pay for these changes, or whether the cost will be shared and in what proportions.
Commercial Real Estate
Regardless of whether your interests lie in purchasing, selling, or investing in commercial real estate properties, following the advice in this article is a great way to get started or put yourself ahead of the pack. By following these specially selected tips, you can practice your skills at buying and selling commercial real estate and become a real pro.