Keep Your Sanity While Navigating Commercial Real Estate

Purchasing commercial real estate is vastly different from obtaining a residential property. The following tips will help you in making the commercial market works.

TIP! Make sure that the commercial real estate you want to purchase is equipped with connections to all of the utilities you’ll need. Your particular business might need additional services, such as cable, but at the minimum there should probably be sewer, water, phone, electric and gas.

Commercial real estate involves more complex and time intensive than buying a residential home is. You should understand that although this is a huge undertaking, you have to be diligent in order to get a profit.

TIP! When considering a piece of property, you must pay close attention to the surrounding area. Expensive, luxury-oriented businesses will thrive in more affluent neighborhoods.

If you have to choose between two different properties, the larger one may be the better choice. Generally, it’s like buying in bulk; the more you buy, the lower the price per unit.

A variety of different criteria require consideration in order to increase or decrease your lot actually is.

TIP! When you are considering making an investment in commercial real estate, know what you need. List all of the features that are necessary for your operations, such as the overall size requirements for your rooms and amount of restrooms required.

Keep your rental commercial property occupied to pay the bills between tenants.If you have multiple properties open, think about why that is, and consider what you may be doing to drive tenants away.

When you write your letters of intent, you should emphasize simplicity by negotiating on the bigger issues first, then move on to the smaller ones later.

TIP! Stick with a firm that is looking out for your best interests before you enter into an agreement. Bad customer service can cost you a fortune when dealing with commercial property, so do your homework.

Have an understanding on hand before you start searching for when it comes to commercial real estate properties. Write down the things you like about the property, important features are office numbers, how many conference rooms, offices, and restrooms.

TIP! Consult your tax adviser before buying your first commercial property. Not only can your tax adviser help you determine the total cost of your potential investment, but he can provide you information about the taxes on your investment and advise you about deductions you may be entitled to.

You might have to make some repairs or improvements to your space before you can use it. This may be simple changes such as repainting a wall or arranging the furniture more efficiently.

You need to know how to get in touch with emergency maintenance procedures. Keep the contact numbers handy, and know how long it takes them to arrive on average.

If you are novice investor, try to stick to one kind of investment. It is preferred to excel in one strategy than start out with many types.

Real Estate

TIP! Become someone on the internet before you enter the market. Design yourself a website, Facebook page or LinkedIn profile.

Ask potential real estate brokers to describe how they make their money before you start working with them.The representative’s answer should be open and honest and should make it clear whether or not the interests and principles of the firm are in line with their own. You need to know exactly how they will benefit from any transaction they take care of on your real estate needs.

TIP! Keep your center of attention on one investment property at a time. Pick a specific niche, such as retail or residential, and look only for that.

This is done so you can verify that the terms reflect the rent roll and the property’s documentation. If you fail to closely examine these terms, you won’t notice any term not considered by the rent roll, altering the pro forma.

TIP! Create an informative commercial real estate blog, or network with industry professionals on sites like Twitter or Facebook. It is important to keep in touch with your contacts, for they can be beneficial to you in the future.

You need to acknowledge that every property has a limited lifespan. The building may need a more modern roof or an electrical system. All buildings periodically need maintenance to maintain the quality of your investment.Make sure that you develop a plan for the long term to manage repairs such as these.

TIP! Find your financing before you do anything else. Loan products and commercial lenders are very different than a home loan.

Keep your focus on one investment type at a time. Whether it’s an office building, renting apartments or some other type of commercial investment, do yourself a favor, you should focus on just one kind of investment. Each type deserves your undivided attention. You are better served by mastering one investment rather then spread yourself too thin across many others.

TIP! Make sure you understand how much space is really available. There are two ways to measure commercial real estate, by total square feet and usable square feet.

Think about environmental concerns that the property poses. A thing that people are often worried about is that your commercial property with hazardous waste generation or disposal issues. As a property owner, it is your responsibility to handle these issues, regardless of whether you were directly responsible for them.

TIP! Locate a lender prior to putting in an offer for a commercial property. Research the interest costs and satisfaction ratings for lenders in your town.

You can send out a newsletter about commercial real estate, or contribute regular content to social media. Don’t just fall off the face of the earth once you complete a deal.

TIP! The relationship you forge with private lenders and investors when purchasing commercial property is tremendously important. Make sure you have a big network because there’s a lot of property that goes unnoticed and is sold, you want to increase your chances of making deals by always being informed.

Think bigger when you think about commercial properties. If you are considering investing in a building that only has about five units, consider the fact that managing twenty is probably just as easy. Both sizes of buildings need commercial financing, and a larger building will cost less to finance per unit.

TIP! Add a blog to your website to help you create an image as an expert in the field. Increased traffic leads to a larger potential customer base and more sales and signed leases.

Real estate pros can recognize a solid investment immediately. In addition, they have a keen eye for observing any areas of the property that will require costly repair, and they can estimate financial risk to ensure they will not lose money on the deal.

However, each opportunity and property is unique, and the information that you have about a specific property will guide your decision.

TIP! Try feng shui in your home office as well as commercial real estate buildings. Spaces that allow energy to flow freely, without obstacles, also appeal to buyers.

Your first step is to find the best financing. Commercial lenders and the establishments that finance them are not the same as the world of residential home finance. They are better in a borrower. While you do need to put more money down on a commercial loan, lenders are usually more flexible about where or from whom you get that down payment.

Be sure about the correct square footage is available.

TIP! When you are purchasing a piece of commercial real estate, know in advance what you plan to do with it. What are you plans for the property, your own business or leasing it? Know exactly what features you require before you begin searching for commercial real estate.

Know exactly what your business needs before searching for commercial properties. You should be aware of space you will need for your business. If you see your company growing in the future, you will clearly want to purchase excess space, it will save you later down the line.

This helps to attract potential buyers if you find people to buy what you have available for sale or lease.

Set your arrangements with these people by drawing up contracts regarding your repayment terms at fixed rates, or give them a percentage of your income from the property.

Think about feng shui principles when arranging furniture in both home offices and all of your commercial real estate properties.

Interest Rates


Fluctuating interest rates pose one of the greatest threats to commercial real estate investors. The economy makes it likely that a good loan today could be gone tomorrow, which leaves investors vulnerable to potential spikes in interest rates. Keep this in mind when shopping for property, and consider the long term options that you have.


As this article demonstrates, finding good opportunities in commercial real estate is dependent on many things. Hopefully after reading this article, you have learned everything you need to know about commercial real estate.