Industrial and commercial properties are sold regularly but do not expect to see listings like you would for a regular home. You have to know where to find these properties, and this article will give you the tools you need to do just that.
Never be afraid to negotiate, no matter which side of the table you are on. Make sure you have a voice and that you are offered a reasonable amount of money for the property.
Commercial property dealings are exponentially more complicated and time intensive than buying a residential home is. Know that the duration and intensity is essential to getting a higher return on the investment you made.
Negotiate, whether you are the buyer or the seller. Protect your interests by standing up for yourself regardless of who is on the other side of the table. Negotiate a fair price rather than accepting one that is too high or too low.
When you’re trying to decide which broker you should work with, take their experience in commercial real estate into account. Look for brokers who specialize in the type of commercial property that you’re purchasing or selling. Most brokers will require you to have an agreement to work exclusively with them.
You should try to understand the NOI metric. Make sure you are staying in the black to be successful.
Even though you may be running a business and ultimately need to secure profits, it’s important that you don’t embellish prices in an attempt to get an extra dollar. Most appraisers can’t take all factors into account because there are an infinite number of variables involved in determining the value of a piece of property. These variables can all make your property worth less than the appraisal claims it is worth.
Before you buy or sell a commercial property, find out several key economic indicators for the region, including trends in unemployment and income, as well as major employers in the region. For example, buying a home near a large employment center, such as a university or hospital, will lead to a higher value and faster sale down the road.
Be careful to choose commercial properties that are solidly and simply constructed if you plan to use them as rental properties. These units draw in the best tenants because they are higher in quality and have nicer appearances. This type of building also has the advantage of requiring less maintenance, an attractive feature for tenants and owners alike.
When you are pursuing an investment in commercial real estate, finding the right type is only the start of the process. Remember, a little knowledge can really help.