Commercial real estate isn't a career to be taken lightly. These strategies can help you succeed in commercial real estate.
Some factors to consider before making a big investment into real estate are the expanding or contracting of nearby employers, local income levels, and the rate of unemployment. Your house will sell more quickly and at a higher value if it is near a university, hospital or any large employment center.
If you are renting or leasing, pest control is important to look at. Getting pest control covered is especially important if you are renting in a building or area that has had previous pest issues.
As with other property purchases, pay attention to the three Ls: location, location, and location. Consider how the neighborhood will affect business. You will also want to calculate growth expectations by comparing similar neighborhoods. You're not only thinking about the here and now; you want to look a decade down the line too. Pick an area with the potential for sustainable growth.
Make sure that the broker you decide to work with has experience in the commercial market. Make sure they have their own expertise in the area of your curiosity or it could be an endeavor wasted. At that point, you might want to consider entering into an exclusive listing with that agent.
It is a far lengthier, and more complicated, process to purchase a commercial property than a residential one. You should understand that although this is a huge undertaking, when all is said and done you will receive a big return on the investment.
If your property deal requires inspections (as it should), look at the inspector's credentials. This is true when working with pest or insect removal, since many people who are non-accredited work in these fields. Seeking out professionals with proper accreditation will be worth it in the long run.
If you have to choose between two different properties, consider the benefits of opting for the larger amount of space. The difficulty in securing financing doesn't increase linearly with the size of the building you are buying. Generally, this is the same situation as if you were buying something in bulk, the more you buy the cheaper the price of each unit.
If you are writing a letter of intent, take it easy. Go for agreements on the bigger problems at first, then get to the smaller issues later in the negotiations. This will diffuse tension during negotiations and will facilitate compromise on the minor issues.
In commercial real estate, there are different kind of brokers. There are agents who only represent tenants and there are full-service brokers who work with both tenants and landlords. If you intend to rent rather than buy, retaining the services of the latter type of broker may benefit you, as tenant-only brokers know what works when representing tenants.
Have a professional do an inspection of your commercial property prior to you listing it as available on the market. If anything turns up during the inspection, you should immediately address the problem.
Finding suitable commercial property for your investment intentions can be quite a challenge, whether you are a seasoned professional or completely new to the process. By following the tips set forth in this article, you will be able to avoid a lot of the stress associated with finding just the right commercial real estate property.