There is a lot more possibility of making money in commercial property than there is in residential property. Finding the right opportunity is not easy. Read these tips to learn how you can maximize your chances of finding the best deals and concluding a good transaction.
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. Properties located near major employers, like hospitals, schools or distribution centers, are often more in demand at every price range.
Do your best to have your properties occupied at all times. If you’ve got open spaces, then the person will end up paying for maintenance and upkeep. Consider why your property has driven away tenants and try to rectify the situation.
Advertise the commercial property to both locals and non-locals. Many people think that investors who don’t live in their city will have no interest in their property, but this is untrue. There are many private investors who prefer to purchase reasonably-priced real estate that is not local to where they reside.
In writing letters of intent, focus on major issues to begin with. Many smaller issues will fall in line on their own with this approach. If not, you can work them out later. The negotiations will go much better and be less stressful if you keep the small stuff out of the way and can focus on the larger issues first.
Plan on doing some improvements to your new commercial space before you can inhabit it. The improvements can just affect surface appearance like painting the walls or moving furniture around. In many cases, walls must be moved and floorplans rearranged. Remind the landlord that these improvements are necessary, and use them to negotiate a lower deposit or reduced rent.
It’s critical to have emergency maintenance contact information very accessible. One way to develop such a list is to ask current commercial investors who they use in the event of an emergency repair. Be sure to have emergency numbers on hand, and remember to check about a quoted response time for maintenance emergencies. Your landlord should be able to provide you a list of emergency contacts so that you can map out a safe and well organized emergency plan, in case an emergency happens during normal business hours.
By now, you should feel comfortable with the fundamentals of business real estate. Exercise flexibility and quick thinking while you use the market. If you do this, you can be in a good position to get the most profit.