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You Can Get Great Commercial Real Estate Tips

November 9, 2012

Selling or buying commercial real estate is a very rigorous process. No matter how    much you think you know on this subject, it is possible that you are missing something small, or that you were unaware of. Keep reading to discover some tips that will make commercial real estate a little easier to understand.

Commercial Property

Determine what purpose you are going to use a commercial property for before you buy it. Will you lease the property out or conduct business there yourself? You can save effort and time by defining your commercial property needs before you set out on your search.

Fluctuating interest rates are responsible for the greatest threat to investors in commercial real estate. A bad economy can cause rates to rise and fall quickly, and investors find themselves unable to predict these tendencies. Think about this when you are out shopping for a new property. Consider what your long-term options are.

TIP! You need to advertise that your commercial property is for sale to both locally and non-local people. Many sellers mistakenly assume that their property is only interesting to local buyers.

To find a honest real estate broker firm, ask them how they make most of their money. They should be able to discuss the question openly and tell you that their best interest differs from yours. Make sure you understand how they are going to benefit from the transaction that they will take care of for you.

Make sure you know who does emergency maintenance work if you rent commercial property for your business. Find out from your landlord who to contact for emergency repairs, such as plumbing accidents. Have the phone numbers on speed dial, and know how long it generally takes stuff to get fixed. Use any advice you can gather from a landlord to protect your customers with properly configured emergency plans.

Dual Agency

To prepare for any sizable investment in commercial real estate, investigate indicators of fiscal health around the property in question, such as average income levels for nearby residents, rates of employment and unemployment, and whether jobs in the area are rising or falling. If you’re house is close to a university, hospital, or large employment center, they sell quick and at increased values.

TIP! Once you have signed a new lease for a property, your next priority should be your rent strategy. The effectiveness of your strategy will have a significant impact on the success of your new investment.

Check any disclosures a potential real estate agent gives you carefully. Look for any disclosures regarding dual agency. This means the same agent will be representing the two parties. In other words, the agency is working for both tenant and landlord simultaneously. It should be disclosed if there’s a dual agency, along with an agreement by both parties.

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. Managing units of larger sizes is not actually that different than smaller ones, and can realistically cost you less money.

Research and learn more about the Net Operating Income, a commonly used metric for commercial real estate. To succeed, have positive numbers.

Keep your center of attention on one investment property at a time. Your center of attention should be placed on a specific investment, whether it is an office building, land, apartments, retail, etc. Each type deserves and requires undivided attention. Mastering one type of investment will set you up for success much faster then spreading yourself across many mediocre investments.

TIP! Always think ahead when considering a real estate investment. If you ignore this, it could cause you to spend more than you had planned keeping up the property.

Make certain to only put your focus on a single investment at any given time. Whether you’d like to get involved in investing in commercial property, renting apartments or some other type of commercial investment, do yourself a favor, and choose just one investment to focus on. It is best to be able give each investment your undivided attention to ensure the best possible results. You’re better off being an expert at one than you are being average at many.

Of course, it is never wise to assume you have enough information about any important financial matter, and this includes commercial real estate dealings. Keep learning as much as you can, and use the tricks you just read to make you stronger and more confident. This information will help you bring in more income.

credits: http://tictracker.com/

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