Commercial properties are listed often, but you won’t see them in preferential listing like the residential listing for homes. You will need to do research and search the market in order to locate them, as well as utilize the tips provided by this article.
Consider visiting websites that contain a wealth of information beneficial to new and seasoned commercial real estate investors alike. You can’t be too informed about the subject, so try to always be seeking out new sources of knowledge.
Location is a very important part of commercial real estate. Pay attention to the property’s surrounding neighborhood. Also, consider local growth projections. This is important, as you don’t want to be in a current growth area only to have the neighborhood stagnate in a few years.
You should learn how to calculate the (NOI) Net Operating Income of your commercial property. You need to keep your numbers positive if you are going to be successful.
Always ask to see the credentials of any inspectors you hire for your real estate deal. This guideline is especially important when working with people who deal in pest management; these specific fields are often populated by practitioners who lack proper credentials. You’ll have less problems after the sale, as such.
You need to think over the community any commercial property is in before you commit to it. Affluent neighborhoods tend to have residents with larger budgets, making a commercial real estate property in such an area is a great choice. However, if your products or services cater more to those with less funding, consider a location in a neighborhood that fits your potential clientele.
When you are constructing a letter of intent, make sure that you keep it concise by focusing on larger issues first. Save the smaller issues for future negotiations. Doing it this way will allow the negotiations to be less intense and get them to agree faster.
Have an understanding on what exactly it is you are looking for when it comes to commercial real estate. Write down the features of a piece of property that are the most essential to you, such as how many square feet it must be and the number of specific rooms it should have, including conference rooms, offices, and restrooms.
Dual Agency
Read the fine print about your real estate agent. Look for any disclosures regarding dual agency. In this case, the agent is two-faced: she is representing both parties to the transaction. Dual agency occurs when the landlord and the tenant hire the same agent. If this is the case, and the agent is a dual agent, this should be known to both parties and agreed to by both parties.
Finding your optimum commercial real estate property will only see you half way through this process. Arming yourself with some good information makes the whole real estate process so much easier.