What the Pros Wish You Knew About Commercial Real Estate
Real estate agents like to talk, and it’s never better than when they’re talking about what they wish their customers knew. Next time you find yourself in a room full of these professionals, try asking them what tips they wish their clients knew.
One area where this is especially true is retail property for sale in Perth. It’s a huge industry, worth hundreds of billions of dollars each year, but most people only get involved in it after years of experience. As a result, some basic truths can be lost on people new to the field — or at least they wish they were.The commercial real estate market is a complex, multifaceted arena. It’s also one in which a little knowledge can go a long way.
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So here are three commercial real estate tips the pros wish you knew.
1. Commercial Real Estate Is Big Business
The first thing to know about commercial real estate is that it’s a big business. According to the National Association of Realtors, commercial and industrial real estate sales totaled $415 billion in 2017, up from $385 billion in 2016. In addition, the total volume of transactions for the year reached $503 billion. So yes, there are deals to be made in CRE, but you have to be prepared before diving in.
2. Don’t Do It Alone
There are many moving parts when it comes to CRE transactions: brokers, managers, inspectors, contractors and lawyers all play a role at some point during the process. This is why it pays to surround yourself with individuals who can help you navigate uncharted waters.
3. Find the Right Agent
The first step in any real estate transaction is finding the right agent. While it might be tempting to go with a friend, relative or acquaintance, don’t let personal connections sway your judgment. In commercial real estate, as in any other industry, there are many different specialties and niches. Some agents specialize in retail space, others in office space and still others in industrial space.
Don’t assume that just because someone sells residential properties they know everything about commercial properties as well. While residential and commercial real estate may seem similar at first glance, they are two very different beasts.
Think of it this way: Would you ask a brain surgeon to repair your heart?
4. Choose the right location
The location of your business has a huge impact on your bottom line. It affects everything from parking and transportation options for customers and employees to the cost of utilities. If possible, do some research into the neighborhoods you’re considering before deciding on a location. While it’s not always possible to choose exactly where you’ll be doing business, being flexible about where you set up shop can have a big effect on your costs and your ability to attract customers and employees.
5. Analyze the competition
The days of “build it and they will come” are long gone — today’s retailers must analyze their competition carefully before they open up shop. This means knowing not just what other businesses are nearby but how many customers they’re likely to attract, where they come from and why they choose them instead of you.