How Do you Select Best industrial property and commercial business Buildings for sale in Centurion?
[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 Centurion 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 Centurion over the years.
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 Centurion:
To sell or lease a commercial property as a real estate agent you have to tap into the target market and do it well. This says that you have to understand that target market in your location before you start the process of promotion. To define a target market is sometimes hard given the relative property.
Ask yourself these questions:
- What media will reach the target market in a direct and sustained way?
- What is the best time to promote the property to the target market?
- What is the capability of the target market to act and purchase the property at the moment?
- Why would the target market buy or lease such a property now or at any future time?
The internet today is playing a significant part in the promotion of property. It is cheaper but available to all in most marketing campaigns. It has a sustained promotional life and has the ability to capture enquiry for many weeks.
When the enquiry starts to come in, it should be captured and categorised. The value of a great database of buyers, sellers, landlords, and tenants is high in the operation of a real estate office. The more people you know the better the listings and enquiry will be. This is where a team of good salespeople all running an accurate database of well qualified prospects can make a significant difference in the market place.
Commercial Real Estate - Why Auction Investment Property for Sale?
When you list a commercial property as a real estate agent you have to get the price just right. The market buyers know what they want and what they should pay for particular property types. Pricing a property well is part of your selling strategy.
When you make a mistake in the property method of sale and or the price, you can be wasting your time in the marketing of the property. Not a good option when the listing is to make a good impression in the local property market. You need good enquiry from the first release of the marketing campaign.
Obviously the seller wants the highest price, but setting a price that is too high will kill the enquiry on the property in the early stages of the property marketing campaign. So you have to get the price just right.
These questions will help you with pricing the property. It pays to discuss these points with the seller of the property so they know the key issues that underpin and support the sales strategy that you choose.
Search for Commercial Industrial Property For Sale Near Me in Centurion
Industrial property is the entry point for many property investors to the commercial property industry. As a property type, industrial property is relatively straightforward with little complexity. The property owner just needs to target and strategise the following issues when looking for a property to buy:
- Stable tenants
- Achievable rentals
- Good property location
- Industrial property precinct
- Growth of the local community and business sector
- Vibrant industrial community supplying services, products, and raw materials
- Access to transport links, ports, airports, and railheads
So now let's look at the industrial property needed today by tenants.
What do Industrial Tenants Need?
Traditional warehouses will include quality height, size, loading and unloading facilities, quality office space to support industrial operations, ample car parking for staff and customers, hardstand areas for operational flexibility, and high levels of security to protect the tenant's goods and their operation.
Industrial tenants today are far more sophisticated and demanding when it comes to selecting a property to lease or buy. The investor should therefore select a property that has all the elements of property usage that tenants expect in the local market. Tenants know that the property will impact operational costs and eventually the bottom line of their business. Tenants will choose their property well as a consequence.
Taking the First Step to Investment in Industrial Property
Industrial warehouses are simple to construct and have a long economic life hence the investor sees it as an entry-level investment vehicle and popular. Providing they select a sound and strong tenant, and apply a good lease, the stable future of the property for investors is normally achievable.
There is very little management required on industrial property, and as direct result many private investors will manage industrial property themselves. Unfortunately this does have negative connotations, in that the first time investor sometimes has little awareness of the specialist terms and operational conditions that is supported by lease documentation on their property.
With industrial property it pays to recognise that the property may be uniquely and specially suited to a particular tenant. This means that the vacancy threat in industrial property must be carefully monitored as any lease reaches the end of term. It is not unusual for industrial property to remain vacant for a lengthy period in the current market.
Mortgage Lenders and Industrial Property
Mortgage lenders for fully leased warehouses occupied on the long leases see them as being good collateral for loans. Long-term financing is typically available for industrial investors at competitive interest rates. The investors of industrial probably find it easy to refinance an expanding portfolio on the back of their established industrial and well leased property.
The secret to success in industrial property investment is to have:
- Good leases
- Good tenants
- Good vacancy awareness and minimisation strategies
- Sound recovery of property operational costs
- Good maintenance controls
- Good insurance strategies
- Minimal exposure to risk from the property
- Well established permitted use and compliances
- Good income and expenditure budgets
Industrial property is the market segment that is normally suffering early in an economic downturn. That is due to the close integration between the industrial business community and the consumer. Fortunately, it is the industrial property market that responds quickly when the economy moves towards growth and stability. Landlords should respect this fact and monitor their way through the downtimes as they will always come and go.
Investment Property is cyclical and will on average move through a complete cycle every 7 to 10 years. In today's market, many investors know that real opportunity exists today at the beginning of a new property cycle. This cycle is currently evident in most countries and major cities.
Buying Commercial Real Estate As Investment 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 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:
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.
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.
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.
These property types will have usage for industrial purposes only. Such as
Also is called Mini-Storage, it is used for personal storage for lease by consumers.
These property types are unique and the financing them can be difficult. They include
gas stations, oil change facilities, etc.