Are you looking for a commercial property purchase or lease? Negotiating commercial property deals is generally not an easy process. There is just a lot that needs to be put into consideration in order to ensure that the process is a success. There are important details that you must factor in such as how much you will be spending on the asset, whether the yield from commercial real estate asset will be one that is commensurate with that of the entire market, the terms of lease and whether the commercial property allows tenancy or sub-letting permissions in case you are leasing. This is too much to consider and sometimes it is best to entrust everything in the hands of business broker Brisbane LJ Hooker commercial real estate services with experience in handling these kinds of negotiations.
If you are a new buyer in the market, having to think about so many considerations and somehow put them together on the negotiating table may seem like a daunting task. However, with expert commercial real estate negotiators such as business broker Brisbane LJ Hooker commercial real estate experts, this is just an opportunity to give you the best deal on our next commercial property purchase or lease.
If you find the prospects of commercial real estate negotiations a bit daunting, there are certain important things that you need to keep in mind in order to get favourable terms from the deal. These include the following:
What is right for you?
The most important thing that you need to keep in mind when it comes to commercial property purchase or lease is whether the commercial space will be right for you. Know your investment requirement or lease requirement and you will be able to approach your negotiations more strategically.
When you are looking for a property that you can buy, look at the historical performance of the market and the property. Look at the property’s capital growth performance as well as its yield over the years. Check if there is a discrepancy between your research and published data given to you about the property.
When it is a lease property, have a close look at its documentation and determine if it has some pending lease renewals. You could be buying the property at a time when some leases are pending renewals and you will be forced to begin searching for new tenants which can be a whole new headache.
For lease properties, it is also important to review the tenants’ payment history. Check if some tenants are in arrears. Arrears generally indicate the commercial property was poorly managed or that proper screening was not done when admitting new tenants to the premises. If you are going to purchase the property, it is important to negotiate with the current owner so that they can settle all the outstanding debt within the property purchase price. It is a tricky terrain and you will need the services of a business broker Brisbane LJ Hooker commercial real estate expert to help you navigate it.
Inquire whether there are any hidden costs when it comes to managing the property. Past issues or hidden costs are going to directly impact your returns. These should be considered and negotiated in the contract.
If the property is in poor shape, it may need some renovations and fitting out at your cost. Make sure that this is provided for in the agreement.