Not all Small Commercial Space For Sale Near Me in Sunderland Ridge should be auctioned, but the auction method of sale does have real advantages if the property is just right and the market is accepting of that method of sale. Here is why.
The key governing factors to determine if auction is a real chance or choice for the commercial property owner are the current levels of enquiry for that property type, and the prevailing business sentiment. If this is the case then you can look further at auction.
The auction method of sale is a proven time based sale process that flushes out the enquiry and if the investment property ticks all the other boxes such as acceptable (and not excessive) levels of comparable property on the market that are competing with the subject property coming up for auction.
Do not overlook the advantages of auctioning a commercial property. Just make sure all the other existing elements are in support of that method of sale before you start, which is why they use commercial business industrial property buildings for sale agents.
How Do You Select The Commercial Business Industrial Property Buildings for Sale in Sunderland Ridge?
All property that has the potential to generate revenue now or in the future is commercial real estate. Some types of commercial real estate are:
o OFFICE PROPERTIES... Executive office space, office buildings, executive suites, flex space, rental office space, upscale office parks, corporate headquarters, class A office suites, freestanding offices, bank branches.
o RETAIL PROPERTIES... Shopping centers and shopping malls, shops, strip center sites, chain store site, showrooms, major franchise locations, showroom space, retail sites, pads, out parcels, free standing stores.
o INVESTMENT PROPERTY... Office buildings, industrial rental properties, realty, multifamily rentals, regional shopping malls, shopping centers, rental properties, net leased properties, business parks, land parcels, residential developments.
o HOTEL AND RESORT PROPERTIES... Hotels, motels, resort lodging and hospitality properties, luxury resorts, convention centers, motel and hotel brokers, golf courses, theme park sites, stadiums, attractions. Note that unused property held for future appreciation is also considered to be commercial real estate.
Tips for Selling Commercial Property
A real estate agent listing a commercial property should undertake a detailed property inspection before they give any indication of price or rent to a landlord or property owner. In only this way can they really know what the property is all about; that is what positive and negative aspects the property can create as an investment.
Every property is different and for that simple reason it pays to have some form of checklist to run through when as an agent you are listing the commercial property. The focus of the inspection will change depending on whether the property is to be for sale or for lease but here are some of the key issues that you would want to know about in listing the property for sale.
- Ownership of the property together with the split if any on property ownership
- Decision makers for the ownership
- Location detail and survey plans of the plot
- Details of the improvements in the property
- Details of all the leases and occupancy documents that apply to the sitting tenants
- Tenant contact detail for access in further inspections
- Details of rental paid at the current time and how that is documented
- Vacancy factors and areas that are soon to become vacant
- Details of the expenditure to run the property both today and over the last 3 years (in this way you can check the way the property has performed)
- Orders and notices that may have been issued over the property and which remain outstanding
- Matters relating to current negotiations in leases for further terms or amended lease situations
- Details of any existing lease incentives that have been provided to tenants currently and which remain active for the future
- Access arrangements for people and vehicles getting into and away from the property
- Any encumbrances, liens, and interests from other properties in the area and that can impact the subject property
- Services and amenities that serve the area and the property
- Energy supply and energy consumption factors
- Environmental factors that are current or could impact the property usage
- Heritage matters that can impact the property
The list does not end here but it is a good summary of the main elements that apply in a property inspection. Any one of these items could have issues to impact the price of the property. Importantly you are finding the issues before you price and list a property.
When you have the property correctly documented it makes the sale and any lease negotiation much easier. Most buyers today will undertake their own due diligence in the sale and settlement process. Make sure you find the problems before the buyer does and have all the right answers ready.
Find All Small Commercial Space For Sale Near Me in Sunderland Ridge
Real estate has always been known as the safest of investments.
In fact, real estate investment completed after proper research into and evaluation of the property (to determine actual and future value), can lead to tremendous profit.
This is one reason many people choose real estate investment as their full time job.
Discussions about real estate tend to focus on residential real estate; commercial real estate, except to seasoned investors, typically seems to take a back seat.
However, commercial real estate is also a great option for investing in real estate.
Commercial real estate includes a large variety of property types.
To a majority of people, commercial real estate is only office complexes or factories or industrial units.
However, that is not all of commercial real estate. There is far more to commercial real estate.
Strip malls, health care centers, retail units and warehouse are all good examples of commercial real estate as is vacant land.
Even residential properties like apartments (or any property that consists of more than four residential units) are considered commercial real estate. In fact, such commercial real estate is very much in demand.
Or in another case (i.e. when a retail boom is expected in a region), though your commercial real estate investment strategy was devised around purchasing vacant land, you might find it more profitable to buy a property such as a strip mall or small plaza that you can lease to retailers or a property that you can convert into a warehouse for the purpose of renting to small businesses.
So in a nutshell, commercial real estate presents a veritable plethora of
investing opportunities, you just need to recognize them and go for it.
About the Author:
Dave Jarvis is a licensed Real Estate Broker in Florida and is Broker and Owner of Realty Concepts, Inc. a Southwest Florida Real Estate Corporation.
If you are interested in Southwest Florida Properties see his website at [http://www.rciflorida.com]
For additional Real Estate information go to: [http://www.realestateseekerusa.com]
For Real Estate Financing information see : [http://www.mortgageseekerusa.com]
Industrial Property Performance Factors
The value of a commercial property for sale is determined by using some simple formulas that are based upon the amount of net operating income that the property produces each year. So when you are looking at a commercial property for sale, one of the first things that you'll want to ask the broker for is the profit and loss statement.
Some brokers who have listed a commercial property for sale may refer to this profit and loss statement as an IPOD, or income property operating data sheet. Once you get the IPOD, or profit and loss statement, you can then compare the information provided by the broker or seller to your other sources to help determine what the real numbers are. The challenge when looking at any commercial property for sale is that the broker and/or owner will often tend to exaggerate the amount of income that the commercial property for sale produces while also trying to minimize the amount of operating expenses that are reported.
How to Determine the Value of a Property for Sale
The reason for this is simple. The value of any commercial real estate is based on the amount of net operating income the property creates each year. In fact, each additional dollar of annual income increases the value of the property by roughly ten dollars, depending on where the property is located, and how old it is. Note that this extra net income can come from either getting additional revenue in rents, or from reducing expenses by managing the property more efficiently.
The final step in determining the value of a commercial property for sale is to divide the net operating income by the capitalization rate, which varies from about 6 to 12 percent depending on the type of property, the age, and the location of the commercial property for sale. The fastest way to get an idea of what capitalization rate you should be using when looking at a commercial property for sale is to ask another broker who is not involved in the transaction.
Using Escape Clauses to Limit Your Risk
Another way of protecting yourself when looking at any property for sale is to make sure that your purchase contract allows you a period of time to get out of the deal if you are not comfortable with anything that you find. Done properly, you can often tie up a property for 60 to 90 days so that you have time to accurately determine the real value. This makes it easier to look at commercial real estate, because you can get out if you have the right escape clauses.