An investment in commercial property can be made for many reasons. It is important, however, that you come up with your own reason for investing and that those reasons are supported by detailed knowledge and understanding of the commercial real estate market. The more you learn, the more you will financially benefit from commercial real estate. This article contains great tips to help you get started, or to add to the knowledge that you already have.
Real Estate
Make sure you have everything together for your business when you are going to buy commercial real estate. You should know the minimum square footage necessary, as well as any must-have amenities. While the real estate market is in the right place, it would be a great idea to purchase extra space for keeping up with your growing company.
Look out for any motivated sellers. You will have to actively find them, especially those who are motivated enough to sell the property below the market value. When you find the motivated seller, you’ll find your deal; nothing can happen before then.
Think carefully about how many units you want to be responsible for. Some real estate investment experts discourage new investors from purchasing rental properties with very few units in them because they can often be more difficult to manage than larger buildings. The specific details of the property you are looking at will determine if it is a good investment, so do not use the ten unit rule as a strict guideline.
Total Square
One thing you should be clear about when purchasing or selling property is the amount of square footage that exists. Keep in mind, there is a difference between total square feet and the number of square feet which actually constitute usable space for your business. Total square feet encompasses the entire footprint of the structure, even that space that is actually take up by walls and other space that is unusable in terms of open floor space. By knowing both measurements, you will have a smoother time dealing with the property.
Check any disclosures a potential real estate agent gives you carefully. There is a possibility of a condition called dual agency. In this situation, the agent will represent the buyer and seller. The real estate agency will represent both the seller and the buyer. Real estate agents must disclose any dual agency. Both the tenant and the landlord must agree to accept dual agency.
Make sure you are dealing with a company that cares about their customers before you make a purchase. If you don’t do this, you could end up with a bad deal and lose more money as time goes on.
Real Estate
If you are under a lease for commercial real estate, be wary of standard lease forms. Sometimes, a long lease contains not only standard lease clauses, but extra agreements that the real estate company sneaked into the lease without discussing with you. Thoroughly read the lease prior to signing to ensure there will be no surprises later.
There are many benefits to building a personal relationship with your area real estate brokers, lenders and other investors. Make sure you have a big network because there’s a lot of property that goes unnoticed and is sold, you want to increase your chances of making deals by always being informed.
Location is just as important with commercial real estate as it is with residential properties. Consider how the neighborhood will affect business. Compare its growth to similar areas. You’ll want to choose an area that is on the upswing and will continue growing for at least a decade into the future.
The introduction mentioned that no matter what reasons you have for choosing to invest in commercial property, you need knowledge to succeed. By using the advice in this article, you may find great success in commercial real estate.