The first step in purchasing any commercial real estate is knowing your needs and your company’s needs.
Here are some questions to start with
- What kind of property are you looking for?
- Are you looking to use the building for your own business, investment, and/or something else entirely?
- What location do you need?
- Do you need to buy or should you lease the property?
- What are your risk tolerances?
- Are you familiar with the commercial real estate buy/sell/lease processes?
- What is your knowledge of commercial finance/lending?
- Will today’s constant changes in market, rules, codes, and regulations effect you?
If you thought selling a home was difficult in this market, trying to invest in a commercial property can be even more challenging. Today’s constant changes in market, rules, codes, and regulations, WILL effect you!
What are some challenges commercial property sellers face?
- Knowledge of current market conditions
- How to establish current market value
- Staging the property correctly for showings
- Contract negotiations & appraisals
- Buyers credit and financial capabilities to close
- ADA compliance, zoning & building codes
- Wetlands & OSHA requirements
- Addressing requirements of environmental/aspestos reports
- Understanding the entire closing process
The process of identifying, negotiating, and signing a commercial lease can be a long process and it’s important to understand the required steps involved.
- Do you have knowledge of current market conditions?
- What is the best way to establish current market value?
- Understanding of the different types of commercial leases?
- Is the space compliant with ADA, zoning, & building codes?
- What’s involved in a walk thru inspection?
- Lease negotiations?
Is making the ownership of commercial leased property a worry free endeavor for the owner
Items to consider when seeking a property manager
- Goals of the owner
- Control of expenses related to the properties
- Qualifying the financial capabilities of new tenants
- Preparing leases
Investing in commercial property can be challenging at best and not all investments make sense.
Are you knowledgeable of the following?
- The costs involved in building or buying a property to lease out
- What lease rates can be expected for a given location or property
- The rate of return that can be expected
- Renovations that may be required to attract a tenant
- How competing properties are going to affect your investment
- Current market conditions and how it will affect the leaseability of your property