- December 27, 2018
- 0 Comments
The commercial real estate market has had a very successful year and 2019 doesn’t show any signs of disappointing. With the growing demand for quality commercial properties, however, also comes a heftier price tag for both investors and lessees. This doesn’t necessarily mean that you are destined to pay too much on your commercial property, as long as you know how to find and secure the best deals.
Be Willing to Get Your Hands Dirty
Whether you are looking to buy a commercial real estate property as an investment or you need to lease a space to run your business, your willingness to do some work on the space could be just the thing that makes the transaction possible. Older properties that need a little TLC will be listed for much lower prices than updated buildings or new construction. If you’re handy, this would be a great time to cash in on that talent by doing some of the necessary repairs and upgrades on your own. If you’re an investor, this will save you loads of money that you would be paying to contractors, and if you are a tenant, this can help to negotiate lower monthly rent in exchange for your services.
Be Prepared to Make an Offer
With the current state of the commercial real estate market, properties are going fast. That means when you find something you are interested in, you’d better be prepared to make an offer on it. This won’t do any good, however, if you don’t already have the financing available to back it up. Make sure that you have pre-approvals from lenders if necessary and that you’ve done what it takes to get your credit up to snuff.
Patience is a Virtue
Sometimes commercial real estate is a waiting game, particularly at times when the market is going strong. Give yourself plenty of time when you embark on your search. Be prepared to tour several different properties and be flexible with your must-have list. Impulsiveness doesn’t fair well when it comes to investing, so take the time to really flesh out what your non-negotiables are and then understand that it may take more time than you were initially hoping for to find the space that matches your specifications.
Understand Key Commercial Real Estate Metrics
Commercial real estate agents speak a language of their own, and it’s absolutely imperative that you learn to speak a bit of that language too if you want to be successful in the commercial real estate game. Knowledge is power. You don’t have to go back to school, but having a basic understanding of some of the more common terminology will help you to be taken seriously and move forward confidently in your transaction.
Don’t Compromise on Location
The golden rule of any type of real estate is that location is everything. This is one aspect you absolutely should not compromise on when searching for the right commercial real estate property. When it comes to ROI’s (for investors) or exposure (for tenants), the location of your property can make or break you.
Work With a Reputable Agent
This cannot be overstated or stressed enough. While anybody with a real estate license is technically able to handle commercial real estate transactions, not all agents are created equally. You wouldn’t go to a general dentist to get braces, right? Agents who specialize in commercial property do so for a reason. They’ve dedicated lots of time and research into understanding their local market and their particular niche (office space, medical office space, retail, et cetera). Because of this, they have access to inside information and unlisted deals, as well as strong relationships with the types of sellers, landlords, and tenants that you are looking for. You have literally nothing to lose and everything to gain by working with a skilled professional.
Understand the Terms of Your Agreement
Finally, don’t just assume that the terms of your agreement are legit. Take the time to sit down with a real estate lawyer who can look through it and make sure that your best interests are being represented in the transaction. Whether it’s a sales agreement or a lease, it’s extremely important to know what you are getting yourself into.
Looking for Commercial Real Estate in the Baton Rouge Area?
When you’re searching for the right agent to help you navigate the commercial real estate market in Baton Rouge, the simple choice is to contact SVN | Graham, Langlois, & Legendre, LLC. There’s a reason that we have become one of the top names in the commercial real estate game in the local market. We’ve done the research and compiled some of the best commercial properties in the area so that you know you are getting access to the greatest deals around. Take a look through our database of listings and contact one of our team members to get started!