Best Locations For Your Business: How To Find Them
Talk to your rental professional regarding pest control policy if you rent in a communityknown for bug or rodent infestation.
As with other property purchases, pay attention to the three Ls: location, location, andlocation. Consider the neighborhood of the property. Also, consider local growth projections.You need to be reasonably certain that the area will still be decent and growing 10 yearsfrom now.
NOI, also known as Net Operating Income, is a crucial metric to understand in the world ofcommercial real estate dealings. As long as you get positive numbers, you will be successful.
Make sure that the commercial property has access to all utilities needed. Your business hasutility needs of its own, but you will also need water, electric, sewer and maybe even gas.
If you want to rent your commercial property, well built solid buildings are your best bet.Tenants are more likely to move in when they know the property is well taken care of.Buildings like these are also easier to maintain, for both owners and tenants, since repairsare going to be required less frequently.
Commercial rental buildings should feature sturdy construction and simple details. Tenantswill be attracted to these spots because they are maintained well. This sort of building isvirtually maintenance-free, so there will be fewer headaches for owners and tenants.
Try to carefully limit the situations that are specified as event of default criteria prior toexecuting a lease for commercial property. This will lessen the possibility of a lease defaultby your tenant. This type of situation is considered very undesirable.
Take the neighborhood into account when purchasing commercial property. If you purchaseit in a more affluent neighborhood chances are your business will be more successful,because the pockets of your potential clientele are a bit deeper. You might want to buy aproperty in a less affluent neighborhood if you are selling products or services that lessaffluent people would find attractive.
Check into having an inspector look through your property before you put that property backon the market. If they should discover even a single issue with the property, repair or resolveit immediately.
There are real estate brokers who deal exclusively with commercial investments. Real estateagents will work with landlords and tenants, but there are also some that only work withtenants. If you hire a broker that only deals with tenants you may be better off, they are moreexperienced.
When searching for a real estate agent, keep their disclosures in mind so you know who theyare working for. Never neglect the fact that you may be dealing with a "dual agency." Dualagency refers to a situation in which a real estate agent represents both the landlord and thetenant in a commercial transaction. In simpler terms, both the landlord and the tenant aresimultaneously represented by the agency. Both parties need to clearly understand that thetransaction is being handled by a dual agent and consent to this fact.
As previously stated, commercial real estate isn't a slam dunk. It takes money to makemoney in this industry, not to mention a fair time and work investment too. But, even wheneverything seems to come together nicely, profit can be elusive. To find out more BuyingCommerical Properties Can Be Very Lucrative, How To Find A High Quality CommercialReal Estate Agent, Learn How To Properly Manage Commercial Real Estate With TheseTips