1. Learn How Commercial Real Estate Can Make Money For
You
A compilation of tips on buying and selling commercial real-estate makes for a great
beginning point for someone just starting out. This article is exactly the kind of collection of
commercial real estate tips that can help someone who is willing to learn. Following the
advice within can quickly turn a novice into a professional.
Do a walk-through and close evaluation of each property you are considering. You can even
take a contractor with you to provide expert advice. Decide on an initial offer and start
negotiations. Consider counteroffers carefully prior to responding.
If you are checking out more than one property, draw up a checklist to compare the features
of the different properties. Don't go any further than 1st round proposal responses, unless
you let the owners of the property know. Do not be scared to let the owners know about other
properties you have in mind. This may provide you with more room for negotiation.
When you interview a representative of a prospective real estate brokerage, ask how the
company attains most of its profits. This should be a topic that can be openly discussed and
should allow you to learn if there are shared interests between you and them. Understand
that there is still a profitable business to be ran behind the curtains, but a good firm will find
an agreeable median between their financial needs and your real estate demands.
Learn to understand the commercial real estate metric called Net Operating Income (NOI).
To maximize your success, keep your numbers in the positive values.
If you are considering investing in commercial real estate, make sure you are aware that you
could possibly pay very high rates of inflation during the course of the next couple years. In
the past, most leases had various built-in clauses that had their price adjusted to the CPI,
which protected those who signed from inflation. This particular practice is practically extinct
today, leaving you at far more risk of losing money, thanks to inflation.
Think larger when you're thinking about two commercial properties that are viable.
Regardless of whether the property you decide on has twenty units or fifty, the process of
obtaining financing will be the same, and in both cases will require substantial effort.
Generally, this is much like the principle of buying in bulk; the more units you buy, the lower
the price per unit.
Ensure there is adequate access to utilities on the commercial property. You are going to
need to sign up for utility services on your commercial property, along with the ones you have
at your business.
When looking for commercial real estate properties to house your business, keep in mind

2. that size is among the biggest factors. You should purchase commercial property which will
accommodate expansion in your business, so that you don't find yourself having to hunt for a
larger space again in just a few years.
Always go through the disclosures of an agent before hiring him or her. Never neglect the
fact that you may be dealing with a "dual agency." This means the same agent will be
representing the two parties. In effect, while you are paying the agency, they also work for
the opposite side; if you are a prospective tenant, for example, the dual agency represents
the landlord, as well. You and the other party should both agree if dual agency is to be okay.
If you are checking out more than one property, draw up a checklist to compare the features
of the different properties. Accept responses to the initial proposals, but don't go further than
that unless you inform the property owners. Do not be afraid to let it slip to the owners that
there are other properties that you are considering. You might walk away with more money in
your pocket.
Locating the right type of commercial real estate is only half the battle here. A little
information goes a long way.
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