Commercial Real Estate Broker

Considerations While Hiring a Commercial Estate Agent or Broker

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Commercial estate agents and property brokers will help you navigate numerous challenges for sure and deal easier with problems preventing you from reaching your goals. Of course, choosing the right one in today’s pool of outnumbering commercial advisors could find anybody a little intimidated. It is of great importance to everybody to hire a qualified broker to represent you, especially when somebody is planning to invest hundreds of thousands of dollars. Every common sense wants to avoid any potentially high costing mistake during this kind of projects. Here are few things anybody should evaluate when looking for right commercial estate agent or broker which is a very vital factor in your company’s selection and success.

Professional Sources

A good agent or broker will have a valuable network of professionals starting from inspectors, contractors, appraisers, and lawyers for getting you a complete project and transaction. Finding this could take a lot of time, but it gives a lot in return.

Expertise

Commercial Real estate brokersOf course, everybody should look for an agent with strong success rate. Listen to the stories and recommendations of the similar companies they work with to get a clear picture of their work. Also, make sure you choose someone that not works primarily in the residential markets but helps clients find an office or other similar commercial space. An agent having a depth of knowledge in the area you are searching will for sure bring you best solution. Make sure that the experience, skill level, professional situation and personal style of agent suit you.

Commercial Property Market Insight

A good broker needs to have an extensive market knowledge as a foundation for his work. Being aware all the time of the in’s and out’s of market fundamentals makes the perfect way to bringing a perfect decision for your future business property. Knowing the best economic and real estate conditions, as well as professional people in those fields, makes the perfect formula for great collaboration in any commercial property business. Thing like current availabilities, zoning ordinances, investment rates, recent closings and economic snapshots are just some of the special tools a good broker will provide in his service.

Accreditation

AccreditationsEvery quality commercial property broker will participate and continue in personal education in order not just to earn certain accreditations but also to be included in the most important and useful industry standards and best in class industry organizations. Some states even require a specialized license for commercial transactions.
So, the bottom line when looking for a commercial estate agent or broker is checking how many deals have they done for the type of property you want. A good  broker learns best practices, efficient processes and useful tips only through countless transactions and numerous investment deals.

Commercial Real Estate Types

Commercial Property Types

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If you find yourself in any moment in need of any commercial property business, we recommend learning few things about the types of sectors that make up the commercial property. These are the properties which have potential to generate profit through rental income or capital gain.

Office

OfficeIn the UK office space is classified by the quality of the construction into Grades A, B or C, depending on the quality and facilities of the office property. The location is generally categorized into two types : urban and suburban.

Grade A buildings, such as the skyscraper office spaces in the City of London, are considered highly desirable; these are the most prestigious buildings with exceptional accessibility, state of the art systems and higher rents than older buildings or those with fewer facilities.

Grade B office buildings have finishes are fair to good; facilities and systems that are adequate and are usually rented out at lower rate than Grade A office space in the same location.

And finally, Grade C commercial office properties are considered less desirable because of their lack of facilities or age. These spaces are required by tenants that are in need of functional space with rents that are below average for the area. These properties often have longer-term leases that can decrease current market lease rates.

Retail

This is a complicated sector dictated by many metrics, including concept, size, type of trading area and whether or not the property can secure big name anchor tenants. Retail spaces can be multi-tenanted (often with an anchor) or single-use standalone buildings. There is no limitations on what type of business can rent a retail space. They are available to any company that finds them suitable, from insurance offices, medical offices, dance or fitness studios, restaurants, bars and so on. Multi-purpose space always presents a great investment opportunity. Retail leases may contain a base rent plus a percentage rent based on a tenant’s sales figures and they often have long terms.

Industrial

Industrial parks and warehousing properties are usually located outside of urban areas. These locations may include anything from various types of large manufacturing plants to small warehouses located beside major transportation routes. They are very multi-functional as they include a large amount of storage and usually have small offices. Leases tend to have long terms so after a while lease rates may fall behind the market.

Multifamily and apartment buildings

Multifamily and apartment buildingsAs most common property type because they offer a wide range of options. It covers all types of residential property types outside of single-family. They have classified also into class A, B and C depending on the structure, size, and location. Leases are usually typically short-term and are quickly adjustable by market conditions. These are considered as one of the more defensive investment types.

Evaluation of these various types of commercial properties should be significantly different. Depending on what type is in the discussion, influences of market supplying, lease terms, tenant credits and economic considerations is significantly different. So to reduce overall investment risk, a prudent investor must consider spreading across several of the major property types.