There are plenty of properties zoned for commercial or industrial use on the market at any given time, but due to the way real estate listings work, they don’t get noticed as much. You must know where to look, and this article will give you some tips so that you know just the right places to find good commercial properties.
Another factor to be aware of when shopping for property to rent or lease is who pays for pest control. You should make inquiries regarding pest control procedures, particularly if you plan to lease somewhere that is known for insect or rodent infestations.
Net Operating Income, the commercial metric for real estate, needs to be understood. For the investment to be profitable, it has to produce more income than operating expenses.
It is always best to be aware of how your asking price is in relation to the market price. Market conditions can vary greatly; therefore, an appraisal may not be the best indicator of true market value.
If you want to rent your commercial property, well built solid buildings are your best bet. You will be able to attract tenants for these properties more quickly due to the fact that they will know the building is well maintained. These types of buildings are easier to fix for everyone and they might not need as many fixes.
Be sure you position yourself well when it comes to negotiating any lease for commercial real estate, you want to do things like decrease what could be considered as a default event. This will lessen the possibility of a lease default by your tenant. You definitely don’t want this to occur.
Have your property inspected before you list it for sale. If they find anything wrong with the property, you should have it fixed immediately.
Advertise commercial property both to local and distant buyers. Many make a mistake in assuming that the only people who want to buy their commercial real estate property are those who are local buyers. Private investors will purchase properties outside of their area if the prices are low enough.
When hiring a real estate agent, read the disclosures completely before signing a contract with a realtor. Be aware of the possibility of dual agency. What this means is that your chosen agency has an interest in buying and selling the property. Dual agency occurs when the landlord and the tenant hire the same agent. Dual agency is something that should always get disclosure, and both parties involved should be in agreement with it.
As a new investor you should focus on one area of investment only. Select a type of property that you think would make a good place to begin, and focus on it. It is far better to dominate one area of the commercial real estate market than to spread your investing order many different types of commercial buildings.
Finding the right commercial real estate property is only part of the equation. Every bit of information can make a difference.