What to watch out for when buying Commercial Real Estate

KEY LARGO, Fla. - Oct. 29, 2014 - PRLog -- Per Sally Stribling top producing Real Estate Agent for Coldwell Banker Schmitt in the upper Fl Keys, "Commercial real estate, by its very nature, is a complex one, with many different parties and factors. First and foremost, are things such as size, use, location, and legal issues. Unlike residential real estate, commercial properties come with a lot of contingencies, such as vacancy periods. If you choose poorly, it’s very easy to lose money on the deal in a short amount of time. The property has to appeal not only to lessee businesses, but to their customers as well.

Another issue is maintenance. Just because you can charge a Triple Net Lease or NNN Lease, doesn’t mean it’s going to cost you money. Though the tenants may pay rent, be responsible for the cost of their own build out, and pay property taxes, doesn’t let you off the financial hook. These are just a few of the many reasons you need an experience commercial agent.

What to Look For in a Commercial Real Estate Agent or Broker

Unlike a residential real estate professionals, commercial agents and brokers have a lot more people and entities to deal with. You need to find one that helps you to find the right property and who knows what moves to make.

●Expertise with property types. Some commercial agents specialize in office buildings, others in retail shops, and still others, in multifamily properties. This is where you’ll start to hone-in.

●Calculating purchase costs, overhead, and lease income. To you, these will be critical factors. It should also be a priority of your agent who can give you estimates on how much the property will actually cost, what overhead will be involved, and what kind of lease income it will generate.

●Dealing with potential legal problems. Commercial properties have a host of legal issues related to them. You should ask if he or she is experienced in navigating the deal in a way that minimizes and legal problems.

●Assessing the health of a property prior to the purchase offer. A good agent or broker will have the knowledge and the connections to learn about the history and health of a property before you are ready to put in a purchase offer.

●A good network of quality brokers and agents. Another thing to look for is an agent or broker with a large network of leasing agents. This will help you to keep your space rented.

●Understands timing and has patience. A residential property transaction generally closes in four to six weeks, but commercial can take six months or more. Ask about how they deal with the long wait to get paid.

●Good people skills with open communication. Lawyers, local governments, contractors, architects, engineers, all and more will be part of the deal somewhere along the way. Pick an agent or broker that has good people skills and communicates openly.

Take the time to do your due diligence and ask for references. Spend the time before you spend the cash.

Sally Stribling, REALTOR with Coldwell Banker Schmitt Real Estate company, specializes in the sale of fine Homes and Condos in The Florida Keys.

Sally provides buyers and sellers with in-depth professional assistance in the sale and purchase of residential property. If you are interested in buying or selling a home, and want the professional assistance of a seasoned expert, who will work diligently in an effort to satisfy your needs, please call Sally anytime at 305-453-7552