Anyone interested in the commercial real estate market could benefit from a collection of useful, informative tips. 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.
As you comb through possible brokers, search for those who have extensive experience in commercial markets. Make sure they have their own expertise in the area of your curiosity or it could be an endeavor wasted. You should be sure to enter into an exclusive agreement with that broker.
If you rent or lease the commercial properties you own, keep them occupied as much as possible. If you’ve got open spaces, then the person will end up paying for maintenance and upkeep. If you have more than one empty property, think about why that may be, and consider what you may be doing to drive tenants away.
Take the neighborhood into account when purchasing commercial property. In general, it’s better to locate a business in a richer area because rich customers obviously have more discretionary income. You might want to buy a property in a less affluent neighborhood if you are selling products or services that less affluent people would find attractive.
Prior to negotiating with the lease of your commercial real estate, try to decrease anything that could be a default as you can. This can decrease the chances of tenants defaulting on that lease. A default is frustrating and costly.
Have your property inspected before you list it for sale. You should consult with them and see if anything needs to be repaired; if it does go ahead and fix that as soon as possible.
You should advertise your commercial property as being for sale to people locally and those who are not local. Many people target their advertising to local buyers only, thinking that those buyers are their market. If your property is well-priced, advertising outside of your direct area will enable you to tap into a large pool of private investors that would be interested in your property.
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 will make negotiations less tense and make gaining agreement on the smaller issues easier to complete.
Know that there are many different kinds of brokers when it comes to commercial real estate. Some brokers represent tenants only, while full service brokers will work with landlords and tenants. It might be more beneficial to hire a broker who works only with tenants, as he has more experience working with those searching for a property.
Borrowers have to order appraisals with commercial loans. Banks will not allow them to be used later. Cover yourself and your interests by ordering it yourself.
Hopefully the information contained in this article will help you to build a foundation of knowledge off which you can grow to profitable heights. This collection was carefully constructed to help you begin to hone your buying or selling skills when it comes to commercial real estate.