How To Make The Right Commercial Real Estate Decisions
Buying, selling and leasing commercial real estate can be a very dangerous game to play unless you are completely informed on how this market operates. Please, take the time to read these tips about commercial real estate if you’re planning on making any type of commercial move in the near future.
Avoid permitted use clause at all costs. If your landlord insists on it, make it a broad one to ensure room to grow your business. At the time of leasing, you might use the office for a very defined and narrow purpose. Your goal is though to grow and improve your business which might be impossible if your permitted use clause is too narrow and significantly limits your use.
As a commercial real estate agent or seller, be prepared to exercise patience and maintain optimism. Commercial properties are considerably more expensive and complex than residential real estate properties; each stage of the selling and buying process is considerably more protracted than what you may be used to. It is not uncommon for even the most attractive commercial properties to remain listed for months before generating a single prospective buyer.
If you want to rent your apartments or offices at a good price, think about hiring an interior decorator. A good decorator will create a warm environment that makes renters feel at home even if they are renting a rather small and conventional apartment. This could boost the value of your property.
When purchasing a property that you intend to rent out, keep it close to home. You don’t want to be driving further than you would consider a reasonable commute. With a rental property, there is always the possibility of needing to drive out in the middle of the night to deal with an emergency on the property.
If you will be including utilities in your tenant’s rent, be sure to know the cost of those utilities before setting the rental amount. It can sometimes be easy to under estimate the cost of heat in the winter or air conditioning in the summer. Water bills can also vary by area. Having an accurate picture of utilities can keep you from under pricing your property.
If you have a commercial property to sell, make sure that you put in on the market while it is active. The prices of commercial real estate go up and down often depending on the state of the economy. If you sell while things are in an upswing you can expect to make large profits.
Although the opposing party is not your friend, there are a few times when you will want to work together if possible. After you have both done your inspections, it can be worthwhile to get together for coffee to compare notes. If you find a discrepancy, one or both of your inspectors were probably not completely thorough.
It’s a dangerous game out there and it’s incredibly easy to lose everything you put into it. Commercial real estate is unforgiving in every conceivable aspect, so information is your best weapon to make sure you succeed. Before you attempt to deal in commercial property, use the tips we provided above.