Where To Buy Commercial Property Near Me Johannesburg South

Not all Commercial Office For Sale Near Me in Johannesburg South 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 Land 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 Johannesburg South?

Industrial Commercial House

Before we answer this question, it might be helpful to actually define each term first.

Retail and industrial are both considered 'commercial real estate' (as opposed to 'residential real estate'). Commercial real estate refers to buildings or land intended to generate profit; industrial and retail are simply sub-categories of commercial real estate.

Firstly an industrial property is defined as a property used for the actual manufacturing of something, and can be considered either a factory or plant. This is usually zoned for light, medium or heavy industry. This includes things such as warehouses, garages and distribution centers etc.

Retail property is a commercially zoned property used solely for business purposes, the actual selling of the product, rather than its manufacture - retail stores, malls, shopping centers and shops all huddling nicely under the retail umbrella.

3) Natural Light - in especially high demand nowadays

4) Location - close to other offices, public amenities, transportation etc.

Since 1980, retail property has returned an average of 9%, though is currently returning around 6%. Industrial real estate tends to be the most volatile, and is currently returning around 7% (as opposed to its peak of around 12% during the 1990's recession).

And obviously, no matter which form of commercial property you're considering, read the lease carefully. Sounds like a silly thing to say, but you'd be very surprised at the issues that can become issues simply because things weren't read properly!

How To Value Commercial Property

Industrial Old Factory For Sale

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:

  1. What media will reach the target market in a direct and sustained way?
  2. What is the best time to promote the property to the target market?
  3. What is the capability of the target market to act and purchase the property at the moment?
  4. 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.

Find All Commercial Office For Sale Near Me in Johannesburg South

Industrial Land For Sale

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.

Commercial Real Estate - Big Profits

Commercial Unit

"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.

Industrial Office For Sale

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Real Estate Agents For Commercial Properties Near Me Johannesburg South

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

[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 Johannesburg South 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 Johannesburg South  over the years.

Commercial Agent

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  Johannesburg South:

Industrial Office For Sale

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.

Commercial Properties

Industrial Old Factory For Sale

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.

Search for Commercial Retail Space For Sale Near Me in  Johannesburg South

Property For Sale

2016 was truly a record-breaking year for US's industrial real estate sector. The previous year saw this sector's demand outpace its supply, and this trend isn't slowing down in 2017. Because of this bullish trend, the sector's vacancy rate has driven down to 5.8 percent-this was the figure, which was released by JLL Industrial Investment Outlook, in the third quarter of 2016.

Interesting findings

Because of this trend, the landlords are benefited as the rates of rents rose up to 8.2 percent when compared with those in 2015. Seeing this trend, the investors-are grabbing the opportunities to buy real estate in this expanding market and leveraging the private sector financing via commercial mortgage lenders.

In the industrial real estate sector, the year-over-year investment is down by 28.9 percent from the third quarter of 2015, but the total investment volumes look to be on track because they're all set to create the second-largest tally since the Great Recession.

Due to this, 2017 has a few uncertainties as far as the industrial real estate is concerned. However, the overall outlook of this sector continues to appear optimistic. The mix of uncertainties and optimism defining today's real-estate sector has motivated us to give you five top factors that'll drive the industrial real estate's demand this year.

Creative industrial realty development is rising

The unprecedented demand for industrial real estate and the push to improve delivery services may easily influence development across the US. This development may further persuade a lot of companies to find a space in secondary or even tertiary markets. Because of this, small-sized urban-core warehouses, reconverted assets, fulfillment centers, and multistory warehouses can easily become solutions for several businesses this year.

As there are many changes taking place in regulations and policies related to trade, transportation and storage sectors might easily get affected. Nevertheless, the fundamentals remain, like always, strong. The construction and infrastructure are doubtlessly looking promising owing to the growth of e-commerce. Because of all these driving factors, we're pretty optimistic about the prospects of industrial realty sector flourishing in the coming time.

Real Estate Agents - How Do you List and Sale List Commercial Property the Right Way?

Commercial Agent

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.