Industrial and commercial properties constantly come to market, but don’t get the highlighted attention or preferential treatment that residential homes do. You need to know how to search to find commercial properties, and this article can provide you with the best way to do this.
Whenever you are considering a commercial lease, you need to think about pest control. If you are renting in an area that is known to have a lot of rodents, pests, or bugs, then ask your agent what the policies on pest control are.
When purchasing any type of commercial property, pay close attention to the location of the real estate. For example, consider the surrounding area and local neighborhoods. Also review the expected growth of other similar communities. You want to make sure that in 5 or 10 years down the road, the area is still a descent and growing area.
When choosing a broker, investigate their years of actual commercial market experience. Don’t use a broker who doesn’t specialize in the type of real estate investment you’re interested in. Allow the broker to acknowledge your wish for an exclusive agreement between the two of you.
Always make sure that utilities can be accessed from the commercial property you are looking into. Every business’ needs are different, but at a minimum, most businesses will need power, sewer and water services.
You also want to take into consideration the neighborhood that your real estate is in when you purchase commercially. Purchasing in an affluent area may help your business to be more successful, since the potential clients may have deeper pockets. Bargain-oriented goods and services will find a more receptive market in lower- to middle-class areas.
Always have an inspector look over your commercial property before you put it out on the market. This way you can make sure it is prepared in advance of a sale, and if any problems arise during the inspection you can take care of it on the front end.
Advertise the commercial property to both locals and non-locals. Don’t be mistaken by the thought that locals will be the only people interested in your sale. In many cases, a private investor will be interested in a property even if it’s not in their area, so long as its price is a good one.
Go on some tours of places you might want to buy. You can even take a contractor with you to provide expert advice. Open negotiations after making your offer. Give a bit of thought to the counteroffers before deciding to accept the offer, make a counteroffer yourself or walk away.
A letter of intent should be simple to begin with, covering only the larger issues. Once an agreement on those terms are made, you can begin addressing the smaller issues. By focusing on the big stuff first, you will have more pleasant negotiations, and you will be better able to manage small matters in the end.
Finding the proper commercial property is just half the battle. Information can help you find success.