Commercial real estate is an entirely different ball game than residential property. This article provides valuable advice and tips that can help you make the best and most profitable decisions.
Another factor to be aware of when shopping for property to rent or lease is who pays for pest control. If the area that you are renting in is known for pest infestations, it is especially important for you to talk to your rental agency about their policies for pest control.
Location is a very important part of commercial real estate. Neighborhood is important, even when you are looking at commercial property. Look at the growth of areas that are similar. You’ll want to choose an area that is on the upswing and will continue growing for at least a decade into the future.
If you are trying to choose between two good commercial properties, think big. If you will be financing the purchase, you should take into account that doing so will require just as much time and effort for a small lot as it will for a larger lot. Also, purchasing more units is like buying in bulk. The more you buy, the cheaper each unit will be.
If inspections are part of the deal on your real estate, be sure to check all the credentials of the hired inspectors. You need to be especially diligent when it comes to hiring a pest control service, as many people who work in this field aren’t accredited. You want to avoid a future liability that can come after the sale, if the inspection was not correct.
If you rent or lease the commercial properties you own, keep them occupied as much as possible. You are responsible for the expenses associated with keeping your unoccupied spaces updated and maintained. Figure out why you have spaces that are consistently open. In some cases, you might need to do some problem-solving so that tenants will want to rent these spaces.
Prior to negotiating with the lease of your commercial real estate, try to decrease anything that could be a default as you can. This will greatly lessen the likelihood that the tenant might default. That is not a situation you would want to encounter.
You should advertise your commercial property as being for sale to people locally and those who are not local. Many people think that investors who don’t live in their city will have no interest in their property, but this is untrue. Some private investors will be interested in properties outside of their areas if the price is low.
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. This will help to reduce some of the tension in initial negotiations and will also make gaining agreement on some of the smaller issues much easier.
As you might imagine, there are a multitude of considerations, when you are contemplating an investment in commercial real estate. Keep the strategies in this guide in mind to help you get a good deal that will fit your needs in selecting the building you need for your business.