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 properly navigate the market to find them, and the tips in this article will help you locate these commercial properties.
Be patient and calm while you navigate purchasing commercial real estate. Don’t invest in a hurry. A poorly thought out investment might soon give you many regrets. It could take up to a year for the right investment to materialize in your market.
Commercial transactions are more complex, involved, and time-consuming than actually buying a home. Understand, however, that the intensity and duration of the process is necessary to achieve the higher return on your investment.
If you want to rent your commercial property, well built solid buildings are your best bet. These types of buildings attract tenants more quickly than other buildings, as prospective tenants know that the building is less likely to have maintenance issues. This type of property will also make maintenance much easier on both you and your tenant.
Occupation is the key when you purchase commercial properties for rent. If you have an unoccupied property, you will be the person paying for the maintenance and upkeep. If you have multiple properties open, figure out why, and try to correct the issue that could be causing a loss of tenants.
Be certain the commercial property you are considering has good utilities access. Every business’ needs are different, but at a minimum, most businesses will need power, sewer and water services.
When you are negotiating to rent a commercial property, try to have the lease modified so there are few events that are considered to be defaulting on the lease. The tenant will then be less likely to violate these terms. This is something you want to avoid.
Prior to selling commercial property, have it inspected first by a professional. If anything turns up during the inspection, you should immediately address the problem.
Write an easy-to-understand letter of intent, focusing on the biggest issues. You can worry about the little things later on. 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.
If there is more then one property you are considering, acquire the house survey checklist for each one during your site tour. Make sure to advise the property owners when you want to take the next step past the first proposal responses. It will likely be to your advantage to informally mention that you are looking at more than one property. This may ensure that you get a much more viable deal.
In commercial real estate, there are different kind of brokers. Some brokers represent tenants only, while full service brokers will work with landlords and tenants. If you intend to rent rather than buy, retaining the services of the latter type of broker may benefit you, as tenant-only brokers know what works when representing tenants.
Finding the right piece of commercial property is just the start. Information can help you find success.