Small Commercial Space For Sale Near Me Waltloo

Not all Commercial Real Estate Agents Near Me in Waltloo 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.

Industrial Retail 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 Waltloo?

Industrial Property

"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.

How to Find Strong and Accurate Comps for Commercial Real Estate

Industrial Old Factory For Sale

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.

  1. Ownership of the property together with the split if any on property ownership

  2. Decision makers for the ownership

  3. Location detail and survey plans of the plot

  4. Details of the improvements in the property

  5. Details of all the leases and occupancy documents that apply to the sitting tenants

  6. Tenant contact detail for access in further inspections

  7. Details of rental paid at the current time and how that is documented

  8. Vacancy factors and areas that are soon to become vacant

  9. 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)

  10. Orders and notices that may have been issued over the property and which remain outstanding

  11. Matters relating to current negotiations in leases for further terms or amended lease situations

  12. Details of any existing lease incentives that have been provided to tenants currently and which remain active for the future

  13. Access arrangements for people and vehicles getting into and away from the property

  14. Any encumbrances, liens, and interests from other properties in the area and that can impact the subject property

  15. Services and amenities that serve the area and the property

  16. Energy supply and energy consumption factors

  17. Environmental factors that are current or could impact the property usage

  18. 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 Commercial Real Estate Agents Near Me in Waltloo

Property For Sale

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.

  1. Ownership of the property together with the split if any on property ownership

  2. Decision makers for the ownership

  3. Location detail and survey plans of the plot

  4. Details of the improvements in the property

  5. Details of all the leases and occupancy documents that apply to the sitting tenants

  6. Tenant contact detail for access in further inspections

  7. Details of rental paid at the current time and how that is documented

  8. Vacancy factors and areas that are soon to become vacant

  9. 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)

  10. Orders and notices that may have been issued over the property and which remain outstanding

  11. Matters relating to current negotiations in leases for further terms or amended lease situations

  12. Details of any existing lease incentives that have been provided to tenants currently and which remain active for the future

  13. Access arrangements for people and vehicles getting into and away from the property

  14. Any encumbrances, liens, and interests from other properties in the area and that can impact the subject property

  15. Services and amenities that serve the area and the property

  16. Energy supply and energy consumption factors

  17. Environmental factors that are current or could impact the property usage

  18. 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.

How Do You Quickly Determine the Value of Commercial Property for Sale?

Industrial Old Factory For Sale

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.

    Industrial Commercial House

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