Having to deal with the commercial property business can be stressful and overwhelming for those new to it and even to those experienced with it. By researching and reading this article, it will allow you to feel less stress associated with the commercial real estate journey.
If you are investigating multiple properties, make sure that you take a site checklist with you. Do not proceed past initial proposal responses, unless you inform the property owners. You should not have any hangups about letting the owners know that you are still deciding on other properties. Making them aware you have other options may get them to accept a lower offer.
When you buy commercial real estate, look for opportunities to buy bigger. The reason for this is that it does not take too much more work to manage a larger amount of units then it does a smaller amount of units, but it will actually cost you less per unit if you buy something with more units in it.
Confirm that basic utility services are already situated at the commercial property. The utilities you will need for your business go beyond electricity; you will also need water, sewer and gas, as well.
Be ambitious and forward-thinking in your commercial real estate investments. If you were thinking of buying a building with five units, realize that it is no harder managing 50 units than five. You need commercial financing regardless of the number of units, and larger buildings will be cheaper per unit.
The new space you purchase might need some upgrades and repairs prior to occupation. It may simply be cosmetic issues that need addressing, such as a fresh coat of paint or some furniture rearrangement. You may even need to tear a wall down to make the floor plan fit your needs. Talk to your landlord about these improvements. Try to negotiate a deal where the landlord pays for some, if not all, of the cost of improving your space prior to moving in.
Square Footage
Make certain everyone is on the same page in regards to square footage. Commercial real estate may be measured by its usable square footage, which is where business would occur. Other measurements could involve uninhabitable spaces and walls. If you know both of these values, things will be easier for you.
Scrutinize any disclosures made by a real estate agent whom you intend to hire. Try to beware of dual agency. What this means is that your chosen agency has an interest in buying and selling the property. In other words, the agency represents the landlord and the tenant simultaneously. When it comes to dual agencies, both parties should actually agree to it and it should be disclosed.
If you want to learn a lot about real estate, check out several websites that offer a lot of information to both experienced and new real estate investors. You can never have too much knowledge.
As a new investor you should focus on one area of investment only. Choose one property type you would like to start with and give it your undivided attention. It’s better to be very good at one particular type of real estate than to be okay at a lot of different types.
If you intend on putting your commercial property on the rental market, find a simple, but solidly constructed building. You will be able to attract tenants for these properties more quickly due to the fact that they will know the building is well maintained. They are also easier to keep in good repair and require less repairs, which will save you and your tenants money over time.
Whether you’re a novice or a pro, finding the right piece of commercial real estate can be difficult and nerve-wracking process. Hopefully by using the pointers in this article, you can find ways to ease the pressure of this unique market as you seek the ideal property.