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Why To Use a Commercial Real Estate Agent for a Commercial Real Estate Transaction and Not a Residential Realtor.
Commercial real estate brokers have the experience & expertise to handle commercial deals, they can be used as a time management tool, they know what questions to ask and how to identify what is important to your business. Commercial brokers like to deal with other commercial brokers, plain and simple. They will share sales and leasing information with other commercial agents that may not be open to the public. They also share information on properties they have listed that might fit another buyers’ or tenants’ needs or vice versa. Is a Realtors Commission Negotiable?
So, what does a commercial real estate broker take into consideration when calculating a commission. Here are a few considerations that commercial brokers look at:
What is an Easement and Why is it Important?
An easement is a right to cross or otherwise use someone else’s property. This could be the right of the neighbor to cross your land to get to theirs, a utility easement such as a pipeline or electrical power line, or water or sewer lines. Think through how wide is the easement, how close you can build to it, can you pave or concrete over the top of it, what are the rights of the easement holder into access, repair and replacement or damage to your property. The Difference Between Assessed Value and Market Value?
Assessed value is the value of the real property that has been assigned to the property by the County Assessor. The gist of the formula is that the county assessor uses a sales value for the land and then adjusts for differences such as build-able square footage as opposed to total square footage, access to public utilities, recent sales in close proximity, property zoning etc. Market value is the price that a willing buyer and a willing seller agree to sell and buy a property. This value is driven by things such as location, visibility, access, what surrounds the property (drivers of business). You’ve Now Purchased a Commercial Property, What Type of Financing Should You Use?
1) SBA financing – These are loans that are guaranteed or direct loans from the Small Business Administration. Their advantages are that they usually offer low interest rates, lower down payment (10% in some cases) and are fully amortizing. The disadvantages to these loans are that they require quite a bit of documentation and they usually have prepayment penalties if you sell the property or pay off the loan earlier than expected. 2) Commercial loans – These loans are loans that are funded by the lending institution and are held in the lending institutions loan portfolio. These loans can have maturities as long as twenty years, but most of the loans have maturities of 10 years or less. These loans are usually amortized over 15-20 years but have a balloon payment at maturity. You need to be aware that you might need to pay off the loan at maturity even though there is remaining time on the amortization. These interest rates on these loans are fixed for the term or have adjustment periods during the loan that adjusts the interest rate to the current market. These loans are typically relationship driven meaning the lending institution wants to have the business deposit accounts so that they can earn money from your deposit accounts. The good news is that many times if you give the lender your deposit accounts, they will potentially waive some fees on the loan such as prepayment penalties, loan origination fees, etc. Important Questions to Ask When Talking with a Commercial Broker?
What is a Title Commitment and Why Do You Need it?
A title commitment is very important to you. It is a search of the property to let you know who owns the property, what the full legal description of the property is, it will tell you if there are any mortgages on the property, or any encumbrances (lawsuits, child support, separate maintenance, etc). Title commitments also have exceptions to the property, this means that there is something that is attached to the property (a pipeline, easements, etc.) It will also tell you if you have the mineral or water rights to that property. Ways to Market Your Property?
As a commercial broker, I use many different types of marketing for your property. We take a lot of pictures, develop marketing packages, email blasts, video footage, use our network of contacts and we utilize many different commercial real estate websites as well. All of these marketing tools help get the best possible tenant or buyer for your property. Some Fees to Expect When Selling a Property?
5 Tips for Leasing or Buying Industrial Property
5 Tips for Leasing or Buying Retail Space
How Do I Calculate My Monthly Rent Cost on a Commercial Property?
It depends. It depends on who's paying the operating expenses. Many times for office and retail the lease rate is quoted as a gross lease, meaning the landlord is paying all of the operating expenses and those are included in the lease payment. Top 5 Commercial Real Estate Deals Lenders Like to Finance & Least Favorite
Top 5 favorite (1 being favorite):
Top 5 least favorite (1 being least favorite):
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