Commercial real estate is an entirely different ball game than residential property. The following advice will help you get the best deal on your property.
Buying commercial properties requires plenty of perseverance and calmness. Don't make any hasty investment decisions. You might regret it if you are not satisfied with your real estate goals. It could take up to a year for the right investment to materialize in your market.
If you are renting or leasing, pest control is important to look at. This is important in less desirable locations where rodents and/or bugs are an issue. Have your rental agent inform you of any associated policies for pest control.
Location is a very important part of commercial real estate. Take into consideration the class level of the neighborhood, other commercial properties surrounding it, and accessibility. Also, keep growth in mind. You want to make sure that in 5 or 10 years down the road, the area is still a descent and growing area.
If you have two commercial properties on your short list, you should buy the larger one, if at all possible. Whether it be a twenty or ten unit apartment complex, you want to get adequate financing to back you up. You may have a better price, figured per unit, on the larger apartment complex than on the smaller one.
When choosing a broker, investigate their years of actual commercial market experience. Make sure that they are experts in the area in which you are selling or buying. You need to get into a type of exclusive agreement with your broker.
Make sure that the commercial property has access to all utilities needed. Your particular business might need additional services, such as cable, but at the minimum there should probably be sewer, water, phone, electric and gas.
You have to think seriously about the neighborhood where a piece of commercial real estate is located. Expensive, luxury-oriented businesses will thrive in more affluent neighborhoods. Or if your services are for the less wealthy, purchase in this type of area.
Eliminate as many definitions of default (i.e., actions that constitute default) as possible before beginning to negotiate a lease with a new tenant. If you are thorough, you are less likely to experience a tenant default. This is one thing you don't want to happen.
If you want to sell a property, advertise it locally and on a wider level too. Many make a mistake in assuming that the only people who want to buy their commercial real estate property are those who are local buyers. Many private investors find it appealing to purchase properties that are affordably priced outside of their direct area.
A variety of kinds of commercial property real estate brokers exist. Full service brokers work with both landlords and tenants and there are agents representing tenants only. It might be most beneficial for you to hire a broker who works exclusively with tenants. A broker with that focus will be more experienced in successful dealings with tenants.
Commercial Real Estate
By now, you realize that there are many things that need due consideration if you're going on a commercial real estate shopping spree. Use the tips in this article to avoid common commercial real estate scams, and get a great deal on the building out of which you will do business.