Commercial Real Estate Tips You Need To Know Right Now Remember that dual agency is also an option. In this sort of situation, the agency acts as both parts of the transaction. This means the broker represents you and the landlord during the transaction. Whenever dual agency is part of a transaction, it must be disclosed to both parties of the transaction. Both sides must also agree to the dual agency. Plan on doing some improvements to your new commercial space before you can inhabit it. The changes could be rather cosmetic. Sometimes it is as simple as painting a wall or moving some furniture. In many cases, the changes include moving walls to rearrange the floorplan. Before buying the property, see if you can get the former owner to pay for some of these costs. If you're renting, the landlord might chip in. If you are financing your commercial properties, you need to ensure that you have the proper financial statements for both yourself and your business. If you fail to get proper financial statements, your bank will be less likely to issue you the commercial loan. Do a walk-through of each property on your short list. Think about taking a contractor that's a professional with you while you check out different properties. Once that is done, you can submit your proposal and begin negotiations. Prior to making any final decision, you should thoroughly go over the counteroffers you have received. If you are looking into a commercial property, always consider any investments where you can purchase a larger piece of property rather than a smaller one. You will want to do this because it is not any harder to take care of a bigger building than a smaller one, and it will cost you less in the long run. 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. Data on the sector can be found easily, from sites such as Mark Hanson. Always make sure that utilities can be accessed from the commercial property you are looking into. Your business has its own utility needs, but you are most likely going to need water, sewer, electric and possibly even gas. You need to think over the community any commercial property is in before you commit to it. Purchasing a property in a neighborhood that is filled with well-to-do potential clients will give you a lot better chance of becoming well-to-do yourself! If your business services will do better in a poor neighborhood, buy property there! If you are investing in real estate, consider going big. If you want to get a building that has
five units, you need to know that's it's no different to manage than 50. Smaller buildings must still have commercial financing, and you can often get a better deal on a bigger building. When you interview a representative of a prospective real estate brokerage, ask how the company attains most of its profits. The ideal response is that they are able to balance your best interest with their own.
Published on Feb 11, 2013