When you buy or sell commercial real estate, you need to have all your ducks in a row. Despite how adept you may be in a certain area, you might miss something obvious or something you weren’t knowledgeable about. The following article offers some great insight into buying and selling commercial real estate.
Use your digital camera to take pictures of the property. Make certain that the pictures show irregularities, such as holes or bad paint on walls, carpet stains, and bathtub or sink discoloration.
Always check the credentials of the inspectors you hire. Many people in certain fields are not accredited, including pest and insect removal services. Staying on top of this will help you avoid issues after the deal is completed.
Always rent out all the available space in your commercial rental properties. Remember that if you have empty units, you have to take care of them. Maintenance costs on empty units can add up. If you have lost several tenants or can’t seem to attract them in the first place, there must be a reason. It is your job to figure out the problem and correct it.
With the commercial property, you need to make sure there is easy access to the utilities. In addition to any needs specific to the business, you will surely need to have gas, electricity, sewer and water services, and so on.
Lower the risk of default by eliminating as many things that can be labeled “event of default” as you can prior to negotiating a commercial property lease. Doing so makes it less likely that a tenant can default on the lease. A default is frustrating and costly.
Prior to listing your property for sale, you should first hire a reputable, professional inspector to go over the place. If they should discover even a single issue with the property, repair or resolve it immediately.
Before being occupied, your new purchase my need some improvements or remodeling. In some cases, all that is required are simple changes like moving the furniture around or giving the walls a new coat of paint. The change could be significant like moving an entire wall to work with a new floor plan. You should pre-negotiate the cost of these alterations with the landlord, and try to get them to contribute towards at least part of them.
There are differences between brokers in the commercial real estate field. So-called “full service” brokers represent both tenants and landlords, while there are other brokers that work exclusively with tenants. You may be helped much more with a broker who just works with the tenant, as that person most likely has more experience in handling tenants successfully.
Read the fine print about your real estate agent. Try to beware of dual agency. Your real estate agency will represent each side of the transaction. In other words, the agent is representing both you and your landlord in the same transaction. It should be disclosed if there’s a dual agency, along with an agreement by both parties.
Make sure you know what kind of environment your property is located. If your building is full of hazardous waste or otherwise constitutes a threat to the environment, you will be responsible for resolving these problems, even if a previous owner caused them. Are you aware of whether or not the property is located on a flood plain? That is a decision you need to think long and hard about. Try contacting local environmental agencies that can give you important information regarding the area you’re thinking about buying a property in.
There is always more to learn when it comes to commercial real estate, so don’t make the mistake of assuming you know all you need to know. Always assume that you need to learn more, and always use tips like the ones provided to you here to establish a stronger position in the market. Take the information from this article, and put it to use in the world of real estate.