Commercial Real Estate Investing Near Me Alberton

How Do you Select Best industrial property and commercial business Buildings for sale in  Alberton?

[tag]  is a specialist field. Not all property agents know enough about the commercial property market and the property type to do it well. Sellers in Alberton should choose their agent with care.

The owners of investment property that want to sell their asset should carefully choose a real estate agent that is well versed in the market trends and the property type. That agent should also show a high level of current market share and success in commercial property in Alberton  over the years.

Industrial Old Factory For Sale

Selling commercial property is not an ‘experiment’ or an exercise in ‘hope and pray’. When undertaken correctly in any market situation by a skilful agent, a property will attract enquiry and a sale is possible. The result then sits on the client’s ability to accept the industrial property for sale market price and market evidence. There are always buyers out there; they just have to be found and the sellers need to be accepting of the market trends.

Interesting Facts About Industrial Property and Commercial Business Buildings for Sale in  Alberton:

Industrial Property

What commercial property types should you buy? You should consider the pros & cons of each property type, as well as, have a good understanding of your investment objectives and your experience. These factors will help lead you to your ideal commercial property.

Listed below are the most common commercial property types.

Apartments/Multi-family
Apartments or multi-family buildings are usually the first choice for new commercial investors. Apartment management and financing is very similar to residential, and so new investors feel more comfortable with them. The main disadvantage with apartments, is that they are management intensive.

In order for an apartment to be considered commercial property, it must have 5 or more units. There are numerous sub-types of apartments:

  • Low-Rise Garden Apartments

  • Mid-Rise Apartments

  • High-Rise Apartments

  • Student Housing

  • Military Housing

  • Townhouse Style

  • Co-op
  • When you are looking at properties to purchase, pay close attention to the location and general market for that area. You will want to avoid properties that are located in economically depressed or seasonal areas. Also, the property should have acceptable aesthetic qualities to be competitive with market standards and have a minimum occupancy of at least 85%.

    What if the property you are evaluating has inferior physical characteristics or is in an economically depressed area?

    You may have a higher interest rate, higher reserves and tighter underwriting constraints.

    Healthcare
    These property types are nursing homes, congregate care and assisted living centers. Properties should be close to retail and community services. Be cautious of properties in economically depressed or seasonal areas. Also, be sure that the property complies with ADA requirements.

    Hotel
    Hotels are characterized as either Full Service or Limited Service.

    Full Service Hotels can be further divided into Luxury, Upscale, Mid-scale, and Extended Stay hotels.

    Limited Service Hotels can be further divided into Mid-scale, Economy, Budget and Extended Stay. When considering hotel properties, the property should have a stable operational history. A property with a history of four or less years should be scrutinized. The minimum acceptable occupancy is usually 60%. Lenders also prefer franchise affiliated hotels with franchise agreements extending beyond the term of the proposed loan.

    Industrial
    These property types will have usage for industrial purposes only. Such as

  • Warehouse-single tenant

  • Warehouse-multi tenant

  • Manufacturing

  • Research & Development

  • Flex Space

  • Light Industrial

  • Heavy Industrial
  • Self Storage
    Also is called Mini-Storage, it is used for personal storage for lease by consumers.

    Other Specialty
    These property types are unique and the financing them can be difficult. They include
    gas stations, oil change facilities, etc.

    The Difference Between Industrial, Retail and Commercial Real Estate

    Commercial Unit

    When you are trying to get comps for commercial real estate it is imperative that the comps you get are up to date, since you need to know what the property you are looking at is currently worth. This will help you get an accurate idea of what the market value of the property is. When you go with comps that are too old, it will not give you an accurate idea of the value in today's market. Usually you'll want to go with commercial real estate comps that are less than six months old. The comps you get also need to be "like" comps as well, since you'll want the comps to depict the accurate value of the property you are interested in. Basically you don't want to compare an industrial property with an office building, since this won't enable you to come up with the accurate value. Be sure that the comparables you get are similar to the size and type of the property you are looking into.

    Considerations When Researching Comps

    When you are researching your comps in order to acquire accurate data on the commercial real estate you are considering, there are several factors you'll need to keep in mind. The following are a few things to consider in order to get the best possible comparables.

    Consideration #1 - Similar Properties - The comps that you choose need to be similar properties, in both type and size, to the commercial real estate you are planning on purchasing.

    Consideration #2 - Price Range - The price range of the properties that you use for comps should be close to the asking price of the commercial real estate you are planning on purchasing.

    Comps that are "As Is" - These comps are properties that are similar to the commercial real estate you are considering in the current state of disrepair and current zoning. You cannot use comps that have been rezoned or improved.

    After Developed Value Comps - This is a comp that involves land that has been improved with the infrastructure needed for building construction. This can include sidewalks, curbs, streets, utilities, gutters, and sewer.

    After Repaired Value Comps - These comps are used when you have a building that needs to have some repairs done. This deals with the price that the property will be worth on the current market after you have restored it to good condition.

    As you can see, having accurate comps is very important when getting into a commercial real estate deal. If you cannot get your broker to give you the comps you need, then you may want to tell them you'll have to either get out of the deal or find another broker that can help you find the comparables you need to make an informed decision. Usually, this will help motivate the broker to get the comps you need, since the broker won't want to lose the deal or their commission. Either way, make sure you find strong and accurate comps that allow you to make an informed decision on your commercial real estate deal.

    Search for Business Locations For Sale Near Me in  Alberton

    Industrial Old Factory For Sale

    Though it is certainly more common, and in many cases easier, to find deals with the single family houses, there are times when the opportunity presents itself to acquire a commercial property. And if you are a person who desires to pursue this venture, there are a few things you want to keep in mind when doing this. Following these simple steps can help speed up the process of getting some of these big deals in the pick line.

    First, FFN offers a Commercial Property Boot Camp. This is a must if you want to pursue this arena of the real estate business. This course will teach you all the ins and outs of going through these business transactions. See the website if you want to know when the next one will be offered.

    You will also want to keep your eyes open when you're riding around town, especially for fiz-bow signs (FSBO - "for sale by owner). If you see fiz-bow signs on big tracks of vacant land or any type of property, you will certainly want to call those numbers. When you are dealing with fiz-bow in the commercial property world, there is usually a reason they are trying to sell these properties themselves. And sometimes this can lead to some really good deals.

    Choosing a Real Estate Agent - When Can You Sell Your Commercial Property?

    Industrial Old Factory For Sale

    Not all commercial investment properties 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 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:

    1. Preferred property type in the local market.

    2. Good improvements on the property.

    3. Location factors that attract enquiry.

    4. Capital growth opportunities.

    5. Good tenant profile or anchor tenant.

    6. Good lease structure that supports stability of rent.

    7. Low vacancy factors and associated risk.

    8. Tenant mix that is well structured and balanced for property function and rent growth. This is really important in retail property.

    9. A realistic seller with a reserve price that allows for comparable property evidence and other sales history.

    10. A vendor funded marketing campaign that targets the right buyers and activates enquiry from them.

    11. 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.


    Real Estate Agents For Commercial Properties Near Me Alberton

    Not all Cheap Commercial Property For Sale Near Me in Alberton 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.

    Property For Sale

    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 Alberton?

    Industrial Buildings For Sale

    When you are trying to get comps for commercial real estate it is imperative that the comps you get are up to date, since you need to know what the property you are looking at is currently worth. This will help you get an accurate idea of what the market value of the property is. When you go with comps that are too old, it will not give you an accurate idea of the value in today's market. Usually you'll want to go with commercial real estate comps that are less than six months old. The comps you get also need to be "like" comps as well, since you'll want the comps to depict the accurate value of the property you are interested in. Basically you don't want to compare an industrial property with an office building, since this won't enable you to come up with the accurate value. Be sure that the comparables you get are similar to the size and type of the property you are looking into.

    Considerations When Researching Comps

    When you are researching your comps in order to acquire accurate data on the commercial real estate you are considering, there are several factors you'll need to keep in mind. The following are a few things to consider in order to get the best possible comparables.

    Consideration #1 - Similar Properties - The comps that you choose need to be similar properties, in both type and size, to the commercial real estate you are planning on purchasing.

    Consideration #2 - Price Range - The price range of the properties that you use for comps should be close to the asking price of the commercial real estate you are planning on purchasing.

    Comps that are "As Is" - These comps are properties that are similar to the commercial real estate you are considering in the current state of disrepair and current zoning. You cannot use comps that have been rezoned or improved.

    After Developed Value Comps - This is a comp that involves land that has been improved with the infrastructure needed for building construction. This can include sidewalks, curbs, streets, utilities, gutters, and sewer.

    After Repaired Value Comps - These comps are used when you have a building that needs to have some repairs done. This deals with the price that the property will be worth on the current market after you have restored it to good condition.

    As you can see, having accurate comps is very important when getting into a commercial real estate deal. If you cannot get your broker to give you the comps you need, then you may want to tell them you'll have to either get out of the deal or find another broker that can help you find the comparables you need to make an informed decision. Usually, this will help motivate the broker to get the comps you need, since the broker won't want to lose the deal or their commission. Either way, make sure you find strong and accurate comps that allow you to make an informed decision on your commercial real estate deal.

    How To Value Commercial Property

    Property For Sale

    "Property on ground lease" is among the most confusing phrases, even to commercial real estate brokers. There are up to 3 parties in a "property on ground lease": the business owner, e.g. Burger King, the landowner and the building owner. When you see a sale of "property on ground lease", it could mean:

    1. Sale of land only. In this case, the building owner is the tenant, e.g. Burger King that has a business in the building. The tenant typically signs a 10-20 years absolute NNN ground lease with the landowner to lease the parcel. Should the tenant not renew the lease or be in default of the lease by not paying rent, the building with substantial value is reverted to the landowner. The tenant will make every effort to pay rent to avoid losing the building to the landlord. And so the cap rate for this property is about 1-2% lower than a property with both land and building.

    There are a couple of possible scenarios that could lead into a land sale only:

    · The business owner, e.g. a Burger King franchisee, could own both land and building originally. He then structures the sale of land only to an investor and then leases it back. He receives the tax benefits of being able to depreciate 100% of the building and fixtures. The tenant could later sell his interest in the building without the land to another investor and lease back the building.

    6. Is it easy to sell your interest if the lease has a few years left? If you own the land, your interest may be hard to sell, but still sellable. Once the ground lease expires, the building owner owns nothing. As a result, this can make it quite challenging to find a buyer for the building.

    7. Tax write-off's: Land does not depreciate for income tax purposes. The building, on the other hand is 100% depreciable.

    8. Financing: if you buy the land portion, you should be able to obtain 65% LTV financing in today's market, just like a typical property with both land and improvements. However, it's very difficult to get financing for the building acquisition, especially when the ground lease has less than 20 years left.

    Therefore, when you see a "property on ground lease" for sale, make sure you know what you are buying, considering there are many factors involved that can adversely impact/contest an investor's decision. If you're contemplating on buying the building without the land, think twice and make sure you have a clear understanding of all the plusses/minuses involved in this decision.

    Find All Cheap Commercial Property For Sale Near Me in Alberton

    Commercial Unit

    When salespeople start off their career in commercial real estate sales and leasing they seem to start working on industrial property first. Perhaps that is because the property type is quite simple and basic. That being said, there is still a need to understand the industrial property type and what the prospects in the market are looking for.

    Every industrial property should be fully understood before action is taken in listing and marketing the property for either sales or lease. When you completely understand the industrial property it is a lot easier to make the marketing work for you and bring in the enquiry.

    So let's say that you have a property marketing campaign running and you have some enquiry coming in. Asking the right questions of the prospect will help you move ahead in any property inspection if and when it is to occur. To help yourself here you could develop a checklist that you keep by the telephone and with you as you speak to other people and prospects making enquiries.

    When it comes to industrial property, some of these factors will be important to the people that you talk to or that ring off the marketing of industrial property. Add these facts to other regional issues and create a list of items that help build your market share and convert prospects to the right properties.

    Industrial property sales and leasing is not hard; it is just specialised and your questions and conversations with prospects should reflect that relevance.

    The Difference Between Industrial, Retail and Commercial Real Estate

    Commercial Unit

    U.S. Real estate markets are not so-healthy as they were for decades. First the residential property sector was plagued by the foreclosure crisis and is yet to recover from the devastation. Arising out of the foreclosure crisis, there were many cyclic reactions in the financial market. The cash-crunch spread fast to other areas of financial activities - like auto loans; credit card purchases; hotel room occupancy; business revenues in shopping malls; renting office complexes and so on. Commercial new construction projects were either put off or abandoned totally, aggravating unemployment problem etc.

    The commercial real estate market is inevitably inter-related with all the above businesses. As such the depletion in business revenues is reflected in foreclosure of commercial properties also. How? For example, if a big hotel losses heavily on revenue by the non-occupancy of its rooms, ultimately financial commitments, including the mortgage repayments get hard-hit. The situation of default in mortgage repayment, consecutively for months, eventually leads to foreclosure and distress sale of the commercial property concerned. Needless to mention a distress sale will bring the market value of the property deep down.

    The impact of commercial foreclosures has led to closing of financial institutions in huge numbers. Of a total of 8,000 U.S. banks dealing in commercial property finances, already 250 have been closed; 1300 banks have been advised by the regulators, to reduce concentration of Commercial Real Estate property loans; and many of them are expecting closure or taken by stronger competitors.

    However, in the Real Estate industry circles, it is reported that in a "Sentiment Survey" conducted among 100 senior real estate personnel by the Real Estate Round Table, during the second quarter of this year, 82% of the participants expressed satisfaction that the commercial real estate market is better than last year.

    Industrial Old Factory For Sale

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