We have created a list of our top 10 articles on commercial real estate. If you’re looking to buy or sell commercial real estate, we are happy to discuss how we can assist you.
1. How to Buy Commercial Real Estate – A Beginner’s Guide
There are few investments as enticing and complex as commercial real estate. By investing in commercial real estate, you can enjoy various benefits, including increased income, appreciation in value, and diversification.
However, there are also a variety of costs involved in buying commercial real estate that can lead to undesirable outcomes if you’re not careful.
It’s essential to understand the differences between residential and commercial investments when considering purchasing commercial real estate. This is your first step into making better decisions when entering commercial real estate investment.
Step 1: Research First, Buying Second
It’s easy to hop online and start looking at properties you may want to purchase. However, before you start investing in commercial real estate property, begin investing in your commercial real estate knowledge.
The best way to make sure your purchases maximize their value is to buy the right type of commercial real estate.
2. How does a 1031 Exchange work?
An investment strategy that has been gaining in popularity in recent years is the 1031 exchange.
In short, a 1031 exchange is a way to defer the capital gains tax on an investment property that you sell, as long as you reinvest the proceeds in a “like-kind” property.
This type of transaction can be advantageous if you want to stay invested in the real estate market but don’t want to pay the capital gains tax.
A common misconception about 1031 exchanges is that they are only for rich investors, but the reality couldn’t be further from the truth. Anyone can set up a 1031 exchange as long as they meet the requirements and follow the rules.
However, because this process requires specific steps, it would be wise to consult with a real estate professional before embarking on it.
3. What You Need To Know About Selling A Multi-Family Property
Selling a multi-family home can be an exciting – and a potentially lucrative -experience and is often done for the same reason as selling any other property – that it no longer fits your needs or life goals.
Some owners choose to sell their property to free up capital for further investments. Others are simply ready to move on from property management.
No matter your reason for selling, there are some considerations you should keep in mind before going through with the sale of this type of property. Let’s break down the process of selling your multi-family property and what to look for in each step.
What is a Multi-Family Property?
Multi-family homes are many different types of buildings that have two or more units and may be owned by an individual, a corporation, a partnership, or as part of a condominium.
Understanding how your property falls into the designation of “mulit-family property” can give you clarity on how to further invest in the building – or if would be better for you to consider a sale.
4. How are Consumers Changing the Commercial Real Estate Market?
Before the pandemic of 2020 struck, retailers were already being forced to adapt their practices to consumers’ shifting desires. Customers have increasingly demanded easy, quick, contactless methods to purchase items, and the pandemic only strengthened these desires. Now, there appears to be no going back from the hybrid model of in-store operations and online shopping.
Flexible Shopping Options
Nearly 80% of retail businesses now report that they will implement more flexible shopping models that accommodate consumers who wish to shop in-store; those who want to shop online and receive their items via delivery; and those who want a mix of both options.
5. Six Reasons To Hire A Commercial Real Estate Broker
When it comes to commercial real estate, knowing how to navigate a complex and often competitive market can be challenging. As a company or business owner, having confidence that the property you are purchasing will both appreciate in value and provide long-term returns on your investment can help you build and scale your business. Not only that, but you will want to ensure that the purchase of a commercial property is a decision protected from potential litigation and unexpected complications.
Before you sign on the dotted line, consider working through the real estate process with a skilled and qualified commercial real estate broker. A broker will have the experience and expertise necessary to help you find the best property for your investment dollars and will work alongside you to help avoid headaches and obstacles.
Here are the top seven reasons that you should consider hiring a commercial real estate broker when buying your next property.
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They Can Save You Money
When it comes down to it, your goal in the commercial real estate world is to find the right property at the best price. The better your final cost, the more money you must invest in other aspects of your business.
Working with a commercial real estate broker can save you money across the transaction’s life. Not only do most brokers bake their commission into the entire fee, but you can have a better idea of how much money you will need to pay and where it will go.
Representation by a broker will also save you money through access to leading resources in the industry. These resources and experience can be long-term investments that will show up in lower interest rates and other potential costs.
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They Have The Network & Resources You Need
Commercial real estate agents are seasoned professionals who can offer valuable assistance in your real estate endeavors. By partnering with a skilled team, you can access many resources, including listings, data, and trends. Additionally, your broker can fast-track the process by connecting you with their network of lenders, architects, project managers, and other industry professionals.
6. Are you looking for a Selling Valuation For Your Commercial Property?
If you’re planning to sell your commercial property, it’s crucial to understand how it stacks up against similar properties in the market. Conducting thorough research can help you determine the current value of your property and identify any improvements or changes you may need to make to maximize its value.
Complete the required information about your commercial property and receive an analysis of your property’s approximate value on the market today.
7. Essential Steps When Investing in Hotels
With a global industry market size of over $600 billion, it’s no surprise that investing in a hotel is one of the best ways to put more money in your pocket as an investor. Whether you’re new to investing or a long-time veteran, placing your bets on a hotel could earn you millions of dollars in the long run.
While the COVID-19 pandemic may have put a momentary stop to hospitality services, the future of investing in hotelshas never been brighter. As you prepare for the tidal wave of travelers once vaccine rollouts are complete, keep these essential tips in mind to ensure success.
9. How to Buy a Warehouse
A few years ago, consumer preference shifted away from in-store shopping in favor of online shopping. E-commerce retailers like Amazon led the charge by making it incredibly easy for customers to browse, purchase, receive, and return items from their homes.
As other companies began to follow Amazon’s lead and the pandemic forced everyone to shop online for almost all of their needs, warehouse space became incredibly valuable. But while warehouse demand may be high, it has not yet exceeded warehouse supply, as more and more warehouse properties are being built each year.
If you are considering investing in a warehouse space, there are some things you’ll want to keep in mind to help you make a sound investment when it’s time to finalize the purchase.
Location
When it comes to warehouses, location is the most important factor to consider. The rule of real estate holds true – it’s all about “location, location, location.” Warehouses should be situated near efficient modes of transportation, such as waterways, airports, and roadways.
10. Why You Should Hire A Commercial Real Estate Agent
Money
People often skip a commercial real estate broker because they want to save on commission. They fail to understand that the commission fee is already built into the listing price of the property in almost all cases. You are not really saving money by working independently. The commission amount gets divided between the listing agent and your broker, but if you skip hiring a real estate broker of your own, this entire amount goes to the listing agent.
Consider investing your commission in a broker who can represent you and negotiate the best possible terms. A professional broker can bring in the required expertise to help you secure better concessions, which would help you save money in the long run.
