Buying or selling your first commercial property isn’t as tough as it may seem. You need to make sure you know information about the property before you make a move on it. Continue reading to gain the information you need so you can move forward with a fully formed strategy which will lead to success.
Regardless of whether you are buying or selling, you should negotiate. Be sure that your voice is heard so that you can get yourself a fair price on the property you are dealing with.
As with other property purchases, pay attention to the three Ls: location, location, and location. Take into consideration the class level of the neighborhood, other commercial properties surrounding it, and accessibility. Compare this neighborhood to the growth of other similar areas. You want to know that the community will still be decent and growing a decade from now.
Commercial real estate involves more complex and longer transactions than buying a home. Know that the duration and intensity is essential to getting a higher return on the investment you made.
When you’re trying to decide which broker you should work with, take their experience in commercial real estate into account. 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. Sign an exclusive agreement once you’ve found a broker you want to work with.
Keep your rental commercial properties occupied. If you have an unoccupied property, you will be the person paying for the maintenance and upkeep. Figure out why you have spaces that are consistently open. In some cases, you might need to do some problem-solving so that tenants will want to rent these spaces.
Have a professional do an inspection of your commercial property prior to you listing it as available on the market. If there is anything wrong with your property, have it fixed right away.
When drawing up a letter of intent, try to solicit agreement on big issues first and leave smaller issues for later rounds of negotiations. This way, negotiations will be smoother, and agreements on the small issues are more likely to be reached.
When you are looking at multiple properties, get a tour site checklist. Accept responses to the initial proposals, but don’t go further than that unless you inform the property owners. Don’t hesitate to tell a property owner that you’re considering other properties as well. Most property owners won’t be upset or angry; they expect you to be looking at more than one property. It may help get you a better deal.
Know your needs before you even start looking for a commercial real estate. Identify which features in a commercial property are high value to you, and make a list. This can include the number of floors, units, square feet, the building layout, and anything else that is important to you.
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 provided you with some of the information you will need in order to become a successful, global commercial real estate tycoon.