You probably have a better chance at making a profit in the commercial real estate market than in the residential real estate market. Finding good opportunities can be difficult. These tips will help you decipher the variables so that you make good real estate decisions.
Whether you are buying or selling, don’t shy away from negotiation. Protect your interests by standing up for yourself regardless of who is on the other side of the table. Negotiate a fair price rather than accepting one that is too high or too low.
If you are renting or leasing, pest control is important to look at. You should make inquiries regarding pest control procedures, particularly if you plan to lease somewhere that is known for insect or rodent infestations.
When choosing between two different types of commercial properties, it’s best to look at things on a bigger scale. The difficulty in securing financing doesn’t increase linearly with the size of the building you are buying. Generally, this is similar to the principle of purchasing in bulk; if you purchase more units, you will end up getting a better price per unit.
When selling a piece of commercial property, it is wise to ensure that you ask a realistic price. Your property’s actual value is influenced by many factors.
If you rent commercial property, do what you can to keep occupancy high. If there is still open space, it will be incumbent upon you to pay for maintenance. If occupancy is low, you may want to see if something is wrong with your property, and if there is, fix it.
Lower the risk of default by eliminating as many things that can be labeled “event of default” as you can prior to negotiating a commercial property lease. So a tenant can’t default on a lease they sign with you in this type of situation. This is something you want to avoid.
Visit the commercial real estate properties that you are interested in. It’s a good idea to hire a building contractor to come with you and do on-the-spot inspections of properties you are considering. Once you have all the details, start drafting proposals and enter negotiations with the seller. Closely review any counteroffers you receive prior to making a final decision. Remember the decision is an important one, so take your time.
Establish your goals and needs before you start looking at properties. Draw up a list of specific attributes your office space must have, including size, number of meeting rooms, and available bathrooms.
There are differences between brokers in the commercial real estate field. Agents that work with tenants and landlords both are called full service brokers. There are also agents that only represent tenants. A tenant’s-only broker may serve your needs better than a full service broker.
After reading this article, you should be familiar with commercial real estate basics. Keep learning more and adopt a flexible attitude. By doing this, you can catch opportunities that others miss, capitalizing on the profitability of your business.