Posts Tagged ‘commercial’

Businesses are being warned to avoid tempting but potentially costly shortcuts in commercial property leases. The advice comes following the publication of a new stronger code of practice that includes a step-by-step guide for tenants to negotiate a lease. Leading city law firm, Hegarty Solicitors, welcomes thecode of practice, but says it is not a substitute for expert legal advice that can often secure substantial savings for businesses and anticipate issues that arise years after a lease is signed.

New Government Backed Code

The new ‘Code for Leasing Business Premises’ that was launched in March 2007 by Housing Minster Yvette Cooper, has been published to clarify the process and aims to assist new businesses that are new to negotiating leases for shops and offices.

Commercial Property Partner Richard Hegarty says businesses might be tempted to try and handle negotiating the lease themselves, but it is their lack of experience that makes them more vulnerable, and they need to realise the importance of using experienced property lawyers.

Richard explained, “The new code is not compulsory but is regarded more as a basis for negotiation rather than a blueprint for a lease.”

”I would strongly recommend that anyone entering into lease negotiations takes expert legal advice. The code is still quite complicated, and businesses should take into consideration the time they want to spend trying to understand the lease, and what happens when something goes wrong at a later stage”

”Also, the code is standardized but every property is different. A commercial property lawyer would able to provide specialist advice on each individual scenario and know to look for anything unusual in the lease.”

Negotiating Yourself; A False Economy

He continued, “When people are starting up we know that every penny counts, and they might think they will save money handling the lease themselves. A commercial property lawyer is really like an insurance policy. We are highly experienced at negotiating leases and can often obtain a better deal than they could themselves. The savings they could make can dwarf the legal costs involved, and they have peace of mind knowing they are fully aware of their rights and commitments in the lease.”

The new code suggests that landlords may not want to tie tenants in for lengthy periods. Richard says that when a company is unsure of it’s future, perhaps because it is new or in an unstable market it can make sense to have a shorter lease period. However, many other businesses prefer to have the security of knowing they will not be looking for other premises or incurring moving costs in the near future.

”When you are busy running a business the last thing you want to contend with is the pressure of having to find new premises. The length of a lease is very important, and a commercial property lawyer would be able you help you make a decision to suit you and your business,” commented Richard.

Real estate has always been known as the safest of investments.

In fact, real estate investment completed after proper research into and evaluation of the property (to determine actual and future value), can lead to tremendous profit.

This is one reason many people choose real estate investment as their full time job.

Discussions about real estate tend to focus on residential real estate; commercial real estate, except to seasoned investors, is often overlooked.

However, commercial real estate presents a great option for investing in real estate.

Commercial real estate includes a large variety of property types.

To a majority of people, commercial real estate is only office buildings or factories or industrial units.

However, that is not all of commercial real estate. There is far more to commercial real estate.

Strip malls, health care centers, retail units and warehouse are all good examples of commercial real estate as is vacant land.

Even residential properties like apartments (or any property that consists of more than four residential units) are considered commercial real estate. In fact, such commercial real estate is very much in demand.

So, is commercial real estate really profitable?

Absolutely, in fact if it were not profitable I would not be writing about commercial real estate at all!!

However, with commercial real estate recognizing the opportunity is a bit more difficult when compared to residential real estate.

But commercial real estate profits can be huge in fact, often much bigger than you might realize from a residential real estate transaction of the same size.

There are many reasons to delve into commercial real estate investment.

For example you might purchase to resell after a certain appreciation level has occured or to generate a substantial income by leasing the property out to retailers or other business types or both.

In fact, commercial real estate development is treated as a preliminary indicator of the impending growth of the residential real estate market.

Therefore, once you recognize the probability of significant commercial growth within a region (whatever the reason i.e. municipal tax concessions), you should begin to evaluate the potential for appreciation in commercial real estate prices and implement your investment strategy quickly.

Regarding commercial real estate investment strategies it is important that you identify and set investment goals (i.e. immediate income through rental vs later investment income through resale) and that you know what you can afford and how you will effect the purchase.

It would be wise to determine your goals then meet with your banker (or financier) prior to viewing and selecting your commercial real estate.

Also remain open minded and understand that should the right (perfect) opportunity present itself, your investment strategy might need to be revisited and altered, sometimes considerably.

For example: If you find a commercial real estate property too expensive for you to buy alone but represents tremendous opportunity, you could look at forming a small investor group (i.e. with friends or family) and buy it together (splitting the profits later).

Or in another case (i.e. when a retail boom is expected in a region), though your commercial real estate investment strategy was devised around purchasing vacant land, you might find it more profitable to buy a property such as a strip mall or small plaza that you can lease to retailers or a property that you can convert into a warehouse for the purpose of renting to small businesses.

In a nutshell, commercial real estate presents a huge variety of and tremendous investing opportunities, you just need to recognize them and go for it.

Advertising commercial property in the UK can now be done in a few simple steps.  Searching and posting commercial property classified ads are trouble-free too.  At Search4premises, commercial property marketing can be done with ease. If you want to market or invest in commercial property but you don’t know where to start, give Search4premises a try.  Search4premises is a secure online advertising site for UK commercial property and businesses for sale. The site services those looking for commercial property and those needing low cost advertising solutions as well.  On the one site you can find properties, offices, spaces, businesses and warehouses for sale, rent or lease, whatever suit your needs.

Search4premises works as a catalyst for property buyers and sellers, a vast community where you would need to spend a fortune for advertising, or to find the right commercial property fast.   Advertisers include private owners and property professionals like commercial agents, surveyors and private leaseholders. This means a large pool of prime properties to choose from and effective marketing for sellers. Interested buyers make contact direct with the advertiser.

Advertising on Search4premises is not only inexpensive but, what’s more, we don’t ask for commission or other charges except for the minimal one-off fee on the ad space. This is a site that also considers security during payment so we have teamed up with Paypal to ensure that payments are handled by secure servers capable of data encryption.

Posting an ad for commercial property UK is made easy and fast in Search4premises, because of an easy, well organized step-by-step process.  There are two ways to advertise, display adverts and classifieds. There are categories for private owners and property professionals.  In this way, suitable advertising packages are available for you depending on your type of registration. If you are a private owner and need to post only a single commercial property, register as private owner, but if you have more commercial property listings to post, select the property professional registration type. Of course we also give you choice in advertising.  You can choose to post your ad in a standard manner where a photo of your commercial property for rent, lease, or sale is shown together with all vital information about the property.  Or, for business services and trades etc. you can advertise in the classified pages listings where lists of available commercial properties and businesses for sale are segregated into distinct property types for quick and easy searching by potential buyers. In this section, registered members are also allowed to post want ads so that anyone in the commercial property UK market who has what you need can notify you right away, making finding the right premises for your business faster and easier.

Search4premises also provides an efficient search tool for convenient searching of commercial properties.  This means you don’t have to go through hundreds of different commercial property sites to find that single property that you need.  All you need to do is give a specification of the type of property you want and the location and in one click you will have the list to choose from.  This search tool is actually one good way to keep you advertisements in the frontline as well. 

After spending time learning about the different types of commercial investment property and determining whether you prefer a retail, office or industrial property, you will know what type of investment property you want to purchase. It’s time now for the fun part – actually finding your commercial investment property!
There are a number of places you can look when hunting for a commercial property that will meet all of your criteria.
Internet – The internet is worthwhile as a first point of reference because you can quickly and easily source the availability of commercial property you are looking for, within the price range you are willing to pay and the location you have decided upon. You can narrow down your search with little or no time lost.
Commercial Property Agents – You will also come up with a list of commercial property agents that you can contact. Bear in mind that residential property agents may not be familiar with commercial property, so it’s probably preferable to discuss your needs with a commercial agent to ensure you get sound advice. They can also act as your negotiator to help achieve a realistic price on the property you wish to purchase. The agent’s job is to work for the seller, but all agents know full well – no sale, no commission!
Until you become more experienced in commercial property investment, it may also be a good idea to have a go between (such as a commercial agent) act as your negotiator in purchasing the property.
Newspapers – Another place you might want to look is in the newspapers. A commercial property that’s been advertised privately by the owner is usually worth considering.
Property Owners – Approaching a property owner directly is an option if you feel confident in negotiating the purchase of a commercial property. This option is not for everyone. You will need to be familiar with local commercial real estate and its value to make sure you are paying the right price for the property. If you do decide on this approach, it’s prudent to speak with a solicitor and a property valuer.
Property Seminars – Attending property seminars is a way to connect with people who may be able to put you on to a good property deal or who may be able to help you when the time comes to purchase your commercial investment property. These include commercial property solicitors, finance brokers, etc.
When you think you’ve found the right commercial investment property, be sure to do some thorough investigation that includes a detailed look at the lease agreement and checks on the property itself. You should get professional help here.
Happy hunting and may your next commercial property investment add significant value to your wealth-creation strategy.

Once you’ve decided you want to invest in commercial property, the next piece of the puzzle is to decide which type of commercial property. Will you buy a shopping center? An industrial warehouse? An office? These are the three main types of commercial investment property, and there are important differences the commercial property investor should be aware of.
Retail Property
A major shopping center would generally be too big and expensive as a first investment. Suburban strip shops or small retail buildings located in sound country towns and cities are more likely to suit small and medium investors initially.
If it’s difficult to find quality freehold or standalone retail property at prices that fit within your budget, you can also consider retail strata units.
There are several things you’ll want to look for when choosing a retail investment property. Firstly, a good location is always important. As you’ve no doubt heard, when dealing with property it’s ‘location, location, location!’ You want to be in an area with adequate car parking and lots of pedestrian traffic. Why? Because pedestrian traffic equals business for retailers and business pays the rent – and the rent directly affects your property’s value.
A strong retail investment will have a quality tenant and a sound lease. A vacant property is your biggest potential drawback when investing in retail property. Ensuring your property is located in an area of high pedestrian traffic flow reduces your risk of having a vacant retail property, since retail businesses generally do well in these locations.
If looking for retail properties located in the city, try to find those located near train stations. Local governments often support the development of residential properties around train stations, and residential development will increase pedestrian traffic.
Industrial Property
One of the main reasons why a new or inexperienced investor would disregard industrial property is because it is often not very ‘pretty’ to look at! In previous years industrial property was almost completely dominated by manufacturing premises – but now it’s largely warehouses and distribution centers with an office and sometimes a showroom component. These properties are usually cleaner than manufacturing premises – if this is important to you as an investor.
Industrial property is often strata-titled, which makes it very affordable for the small or medium investor. When selecting an industrial investment property you would look for a building with clear span (as opposed to a building with a large number of pillars taking up floor space), high ceilings, and wide access doors, as these specifications will appeal to most industrial tenants.
Always remember that with industrial property road transport access is critical for the smooth, efficient flow of goods, both in to and out of the premises. You’ll want to find a building that is located near, and offers good access to and from, the major highways. Be sure that large trucks and semi-trailers can easily manoeuvre in and out of the lot without having to back-up. This can make corner lots extremely attractive.
Offices
A small freehold or standalone building or strata suites are the most likely choice for investors who want to purchase offices. Keep in mind that when the economy is strong, there is usually keen competition in purchasing offices because business owners are looking to purchase their premises rather than rent them. This is the main reason why offices are often offered for sale without an existing tenant.
When you do purchase a strata office with a tenant, you will usually get a true net return – where the tenant pays all the expenses for the property. Be sure to verify this in the lease documentation.
A major advantage of a freehold or standalone building is that there is potential to redevelop the property in the future for greater capital gains – while a strata suite often has very little land content, so you simply don’t have that option. Also, with strata property you don’t have sole control in the decisions affecting the property.

Real estate is often known as the safest investment available. Because,real estate investing executed with correct evaluation of the property (and its true value), can result in good earnings. This is one reason how come a few people engage in real estate investing as their regular job. The dialogue of real property are broadly centered toward residential real estate; commercial real estate seems to be not as popular. All the same, commercial real estate also is a good alternative for investing in property.

Commercial real estate includes many various forms of properties. Most folks associate commercial realty with only office buildings, parks or manufacturers/ industrialized units. Even so, that’s not entirely all of commercial real estate. There’s more to commercial real estate. Health care centers, retail structures and storage warehouse are all good examples of commercial real estate. Even residential properties like apartments (or any property that comprises of more than 4 residential dwelling units) are considered commercial real estate. As a matter of fact, such commercial real estate is much sought after.

So, is commercial real estate really profitable? Well, if it were not Lucrative I wouldn’t of have been writing about commercial real estate at all. So, commercial real estate is productive for sure. The only matter with commercial real property is that acknowledging the opportunity is a little difficult as equated to residential real estate. But commercial real property profits can be real huge (in fact, much bigger than you would anticipate by residential real estate of the same proportion). You could take up commercial real estate for either reselling after appreciation or for letting out to, say retailers.

The commercial real estate development is as a matter of fact handled as the 1st sign for emergence of residential real estate. Once you acknowledge of the possibility of significant commercial growth in the area (either due to tax breaks or whatever), you had better begin assessing the potential for appreciation in the prices of commercial real estate and then go for it promptly (equally soon as you find a good deal). And you must really work towards getting a good deal.

If you find that commercial real estate, e.g. land, is available in large chunks which are too costly for you to purchase, you could look at forming a small investor group (with your friends) and purchase it collectively (and split the profits later). In some cases e.g. when a retail boom is expected in a region, you may determine it profitable to purchase a property that you can change into a warehouse for the intent of renting to small businesses.

So commercial real estate exhibits a whole plethora of investing chances, you just need to seize it.

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When looking at an investment, it is important that you consider its commercial property market value. Market value is a very slippery term, and can differ widely depending on how you compute it. Opinions of marketable value can vary greatly. The realtor may think a location has a certain value, but the appraisal might be completely different.

If nobody is willing to pay the amount you have placed on a property, then that is obviously not its true business worth. Additionally complicating things, you can expect the projected business worth to change almost constantly.

Generally, the market value can be defined as the maximum amount that a property will sell for in a “regular” transaction – with both parties fully informed and knowledgeable, and no outside issues affecting the transaction.

Frequently, though, if someone is buying real estate, they have a variety of factors affecting their decision, and a lot of different mental processes that lead them to the final decision. The best real estate agents are able to fully understand these mental processes to facilitate smooth transactions between the buyer and the seller.

But if you are not dealing directly with a buyer, you will have to do your best to estimate the commercial property market value. You can use a number of tools to do this for you.

In fact, many companies offer property analysis services that will tell you how likely an investment is to make profitable returns. They will require some basic information about the property, and you may have to find out some information about the local real estate market, but once you have that information, the process will be very easy.

You can quickly determine if a commercial property market value will lead to returns on your investment, or if the demand is too poor to merit investing.

While it is impossible to get an exact amount that will guarantee a lucrative sale, it is definitely worth it to attempt to estimate a figure.

Once you have a basic figure that you expect to earn from a commercial property, you will be able to plan the future of your investments more accurately. Whether you earn more or less than you expected, you are still likely to make a profit near your estimate.

This is very helpful, particularly if you want to decide what you will be doing with the returns on an investment – i.e. if you decide to re-invest the money into different properties.

If you want to get into the real estate business, you should carefully plan how you are going to figure out the commercial property market value of your prospective investments.

You can estimate it on your own, or you can pay for expensive appraisals on properties that you haven not even decided you want yet. Or, you can use a property analysis service, and make it easy to estimate the commercial property market value.

You can use formulas, software, guides, and any other tools that are offered. It makes the process easier, and it definitely pays for itself.

To increase the value of your commercial property, it is necessary to first establish where your property sits in the market place relative to other similar properties, and how it could be elevated in the ranking of quality, efficiency and convenience.

A ‘switched on’ commercial property owners/investors will submit his property to a regular ‘value audit’ process which the owner can conduct himself or, preferably, with the assistance of the property professionals in his team.

Here are some of the factors which could form the basis of such regular value audits or reviews:

1. Highest And Best Legal Use. There are a number of factors that can influence highest and best legal use. These include movements in population density, changes in zoning, new developments in your locality, and changes in transport infrastructure, etc.

2. Maximize Gross Building Area. The original construction may not have encompassed the full potential of the site or changes in council policy may have increased the potential of the site.

3. Maximize Net Lettable Area. Design and construction techniques are constantly improving and some firms specialize in these areas. There is an initial cost, but any additional net lettable area gained will continue to yield additional income on into the future.

4. Suite Amalgamations. In a multi-tenant property, well planned suite amalgamations can provide larger spaces for larger, quality tenants. Such moves can result in higher customer flow to the locality, with subsequent greater demand for rental space and increased rentals.

5. Highest Quality Tenants. Tenants are in constant competition with one another for customers and new, aggressive leaders emerge constantly. ‘Switched on’ property owners and/or managers identify and target such operators constantly.

6. Lowest Operating Costs. Many commercial tenants pay base rent plus operating costs and the total of these costs are governed by the market. Less operating costs can mean more rent to the landlord/building owner.

7. Maximum Use Of Signage. Tenants need to have high profile and visibility for their business operations – potential customers need to be guided to the tenant business. High customer throughput supports higher rent potential.

8. Best Access For Both Road And Pedestrian Traffic. A commercial property owner has a vital interest in planning decisions that can result in improving or hindering smooth movement of potential customers to and around commercial premises.

9. Marketing And Promotion. This is particularly relevant if your property is part of a

multi-property complex such as a homemaker centre where there may be a common interest in drawing customer traffic through the complex. This raises the profile of your premises in the eyes of potential quality tenants.

10. Quality External Appearance. As with virtually any property, a smart external appearance will enhance value.

11. Legal Use Of Public Space. Good examples of profitable use of public space can be seen in virtually any café precinct where council permission has been granted (for a negotiated fee) for tenant tables and chairs to be placed in public areas allowing for an expanded trading area for the tenant. This can be reflected in an increased level of rent.

12. Low Cost Additional Tenant Facilities. An example frequently seen is the provision of metal storage facilities at the rear of trading premises. This is a low cost item for a landlord, but can be a valuable item for a tenant if it frees up internal trading space which is reflected in increased rental.

13. Top Quality Management. The quality of management of a property is a big step towards contented tenants – and contented tenants pay better rents.

14. Lobby For Beneficial Changes. Councils can be influenced by well researched and well presented representations. Beneficial changes can include changes to local zonings, building height and density, improved traffic flow and street beautification projects.

The field of commercial real estate has been experiencing an increase in the demand of people looking for an affordable place in which to do business. Since not everyone is able to afford to invest in commercial real estate, they are looking at their options in leasing. A landlord will need commercial real estate landlord representation to assist in dealing with prospective tenants as well as effectively placing the real estate on the market.

Leasing a commercial real estate property requires a lot of research and planning to be accomplished, as well as a lot of leg work in interviewing prospective clients and tenants. Commercial real estate is quite different from a residential real estate. It entails more requirements to consider, as well as selecting the right business for your property. Having quality real estate landlord representation will definitely help in screening those businesses and tenants for your real estate.

With a real estate landlord representative, the marketing of your commercial real estate property will be much easier than if the landlord took on this challenge themselves. A professional representative will assist you in planning your marketing strategy to ensure that your real estate gets the widest exposure, featuring its good points and characteristics. They will also help in the formulation of your marketing plan as well as assist in preparing the things you will need to post your real estate in print media and in websites. A good commercial real estate representative should also have a database of potential clients that the landlord would not have access to. Because of this wide coverage, you will be able to find tenants not only locally but in neighboring regions and even on a national level. A wider range of prospects means a better deal for your real estate.

Your real estate landlord representative will help you project the maximum net income that you can get on the operation of your commercial real estate. This means that they will help you choose the business tenant that will provide you a risk free rental as well as the highest rental price offer. You may also be included in the community meetings of real estate brokers as well as receive updates from your agent. They can also present to you a marketing goal plan that you can follow to achieve maximum utilization of your property.

Another job that a commercial real estate property representative will gladly do for you is to set the qualifications for potential tenants. This is to ensure that the tenants that you will be getting are serious ones with the ability to follow through with a leasing contract on your property and are not a waste of time and energy. They will also help in conducting interviews on those potential clients to screen out those that may be too high of a risk, and find those tenants that offer the highest potential of staying in the space.

Real estate properties are great investment opportunities especially if they are maximized and used properly. To ensure that you are getting what you deserve for your real estate property, then get real estate landlord representation. A good representative will gladly help you through the ups and downs of commercial real estate market and will help protect your investment for you.

Commercial property is real estate market is planned to use by for-profit businesses, like workplace complexes, shopping malls, service stations and for other restaurants. Commercial property might be purchased completely by a developer for prospect plans or leased by real estate broker. Commercial property falls anywhere between residential home and investment property.

Basically every included city uses a zoning method to control the use of property within its authority. In order to get permission building a new bureau complex or other profitable business, the city management needs to decide on that chosen area is certainly commercial property. The areas which divide industrial, residential and commercial property are obviously marked on the city maps. If the future business is evidently in an area zoned for commercial use, then the city would probably permit the sale to proceed for the stated use. If any part of the commercial property expands into a residential or work zone, however, then the buyer has look for a ‘variance’, special authorization to cross over a zone boundary.

Commercial property could be detained by real estate agents who treat it alike as residential property. One can also get commercial property through property auctions. Signs publicity the openness and size of the commercial property could be upright, and arrangements could as well be made to purchase or lease smaller lots. Sellers of commercial property might further also agree to make improvements to the land, like grading off rough spots or clearing out surplus trees. A professional developer might purchase enormous swatches of commercial property just to guarantee its accessibility for later projects.

A city often uses zoning laws to put off conflicts among residential homeowners and businesses. Land chosen as commercial property is hardly ever located in the middle of residential zones. City planners hearten commercial businesses to assemble along busier streets and middle downtown areas. This assists to remain traffic to these sites manageable. Some areas of the city might as well be chosen for ‘mixed usage’, that means some commercial property might be used for any other residential purposes. A quaint downtown shopping area with apartments will be an example of mixed usage.