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Purpose of Your Real Estate Investment
October 30, 2017|Commercial Real Estate

Purpose of Your Real Estate Investment

What is the purpose of your business real estate purchase? Is it to divide up large buildings into small offices and rent them out? Or is it to lease space for companies that need warehousing? These are just two of the many questions you must ask yourself when contemplating a business real estate investment. While a piece of property may look good on paper, in the end it might not be what you are looking for.

commercial office building

The first thing you must look at is the location of your building. If it is in a metropolitan area, then the obvious choice would be to create office space. With the rise of startup firms, there is a constant and ongoing need for small affordable office space. Combine that with productive common areas such as board rooms, presentation spaces, and kitchen areas, and you have the formula for a successful leasing operation. The key is to keep the segregated areas small so that you can utilize the most space, to keep the cost low. This is a wise investment choice because most companies take care of their own space and equipment thereby limiting any damage or liability to the structure.

If your building is in a suburban area you can use the same idea as above, but possibly think of medical units. Doctors love to be close to housing developments where the majority of their patients dwell. They know that being close by is an asset to the growth of their practice. People love the idea of being able to go down the street and visit a local doctor or dentist. If you’re going to go this route you must realize that the design structure of the building will be much different than traditional office space. Many such spaces use a lot of tile and harder surfaces because it is easier to keep them disinfected. Probably only the offices themselves will have carpeting. Also the structure of the flooring needs to be sound to be able to support the weight of medical machinery. X-ray machines, MRIs, and CAT scan equipment can be very heavy, so you want to make sure your building can hold up to the extra added weight.

warehouse building

If your building is in a more remote area, you may want to think more in the lines of storage. Your mortgage and property taxes will be lower so the need for multiple tenants is less. Also people that work every day aren’t going to want to travel as far to get to work. So these areas may be better utilized for storing equipment, supplies, and other materials that will only be accessed a couple of times per month. The utility costs will be lower as there won’t be people there every day. The only higher expenditure will be for security. Having people’s valuables in a far out location will require hiring security and having cameras to safeguard their things.

So this gives you an idea of some of the things you must consider when buying a piece of commercial property. Many first-time buyers get trapped in the sale price without investigating the practical uses of their new building. I have seen such buyers find fantastic prices way off the beaten path, and then have a hard time renting out space that they deemed for offices. Such costly mistakes could cause you to have to invest in reconstruction, and to re-purpose the use of your building. Lots of things to think about, but a little foresight can be worth its weight in gold.

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How to Find the Right Commercial Real Estate Agent
September 4, 2017|Commercial Real Estate

How to Find the Right Commercial Real Estate Agent

How to Find the Right Commercial Real Estate Agent

While finding a commercial property for rent, lease or buying, it is important that you have all the paperwork in order. A real estate agent is well equipped with skills and expertise in getting you the best property at the right price. That said, an agent must be able to sort out any issues or disputes that may arise in future too. So it is recommended that you know how to find the right commercial real estate agent.

Experience and reputation matters:

Always rely on a real estate agent who has years of experience specifically in dealing with commercial properties. It is not really difficult to learn about an agent’s reputation these days. Check the portfolio and try to search for some user reviews on the internet. With experience comes a great deal of knowledge and skills using which the agent can get you guaranteed property based on your precise requirements. ¬†Here is some help in finding a commercial real estate agent.

Legal Knowledge:

There is a great amount of legal paperwork that is involved while leasing or buying a property. So make sure the agent you are dealing with is licensed and registered as a commercial real estate agent. Such agents are more likely to be aware of all the legal aspects while signing a property deal. A good agent will not read all the terms and agreements of the deal but explain them to you too. This will help you get a better understanding of how to deal with any disputes should they arise in the future.

Partner for life:

A good commercial real estate agent will be with you even after you have signed the deal. So the agent should be easily reachable as and when you feel the need. There would be certain doubts about the property or some kind of complaints you might come up with. Hence it is essential that the agent offers you that kind of support as long as you own or lease that property. That said, the agent should be flexible in helping you sell the property you bought should you choose to sell it in future. In case of the end of lease period, the agent must help you to extend the lease or end the contract as per your requirement too.

Giving you the options:

Once you set your expectation about a property in front of the agent, he/she must be able to give you more options to help you make the best choice. So a good agent will keep more options, instead of stressing on any specific property. The agent must not be biased towards the seller and instead, try to meet the buyer’s needs.

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