The Basics of the Commercial Real Estate Practice
Special Characteristics of the Smaller Commercial Real Estate Broker Pool
Commercial real estate is a very large market dollar-wise, but there are fewer brokers in each market area by far than there are residential companies. This smaller group means more interaction between the brokers. Integrity and ethics are very important, as you will be doing business with the same people many times over.
Selling An Operating Business & Real Estate - Who's The Broker?
Though many commercial real estate agents will list operating businesses with the real estate, they are two very different animals. It should be a cooperative effort with a business broker in most cases.
Commercial Real Estate Lease Types
Finding a landlord and tenant match in commercial real estate requires a commercial real estate lease type that benefits both. The needs of the landlord are income from rent and the control of costs to assure a profit. The tenant wants to peg their rental costs as closely as possible also. Using the right type of lease, they can both satisfy their needs with a bit of negotiation at times.
The Modified Net Lease in Commercial Real Estate
The modified net lease is so-named because it is a modified version of the triple net lease. Rather than paying all expenses, the tenant may pay taxes and insurance but share maintenance expenses with the landlord.
The Triple Net Lease in Commercial Real Estate
The triple net lease in commercial real estate is used extensively in industrial and retail multi-tenant properties. In this type of lease the tenant pays certain expenses directly in addition to their rent.
The Gross Lease in Commercial Real Estate
The commercial gross lease is sometimes also called a full service lease. The landlord generally agrees to pay all expenses in this type of lease, including taxes, insurance and maintenance.
Commercial Mortgage Loan Sources and Challenges
Commercial mortgages occupy their own unique niche in the mortgage loan universe. They can be challenging for the smaller investor or group of investors. Learn about sources that work with small commercial investors.
Commercial Lease Calculations Tools
Commercial leases involve office space, retail, restaurant and other types of retail and wholesale businesses. Thus, there are several ways to arrive at commercial rental amounts, including percentage, per square foot and others. Learn them here and get a spreadsheet solution to help you do the lease calcualtions.
Commercial Real Estate Specialty Property Types
Commercial real estate agents and brokers can choose from several specialty types of properties to work with. These include office, business brokerage, industrial, retail and investment.
National or Local Commercial Real Estate Firm?
One of the decisions a new commercial real estate agent must make is the choice of a brokerage based on their local or national affiliation. National firms have advantages, but consider all of the facets.
What to Consider Before Becoming a Commercial Real Estate Agent
Commercial real estate agents have unique work environments and income structures that may not be right for everybody. Additionally, those who want to become commercial real estate agents should consider the personal qualities and education levels that agents successful within the commercial real estate industry possess.
Working with Specialized Clients Like Dentists
Dentists are just one example of specialized clients that intimidate many commercial real estate agents. Many agents wrongly believe that these professions are best left to medical office experts, and that their expertise in retail or office space would not suffice for this client. That's not necessarily true, however.
Types of Commercial Loans
Commercial loans can be a necessary part of the commercial real estate process. They can provide emergency funding if an unexpected expense occurs on a property, or they can supplement a mortgage if an owner or investor is temporarily in over his head.
Types of Commercial Mortgages
Commercial mortgages allow investors and owners to obtain significant financing for properties and projects. While adjustable and fixed-rate mortgages are the norm, interest-only and commercial second mortgages are common in the commercial real estate industry as well.
Types of Construction Loans
Depending on the land use and status of any buildings on it, a construction loan may be appropriate for carrying out any beautification, rehabilitation, improvements or renovations. Some of the common types of construction loans include land development, acquisition and development, mini perm, takeout and interim construction loans.
Pop-Up Shops: A Short-Term Solution to Vacancies
A pop-up shop can be a great way to fill a vacant space in your client's retail center. These stores require little maintenance, and provide quick cash for landlords who may have numerous vacancies to worry about.
Classes of Office Buildings
There are three main office building classes available on the market today. Which one your client chooses will depend on her business needs and financial abilities.
Common Landlord Concessions
Landlord concessions can range from free rent to the ability to sublease. Before your client sits down with a tenant, go over the common landlord concessions that are offered to determine where he stands on each of them. These concessions can be vital bargaining tools when you're brokering a lease.
Common Questions for Office Tenants
Office tenants have a lot to consider when looking for new space. A basic questionnaire that breaks down a business' function and needs is an easy way to get a tenant and a tenant representative on the same page before the scouting process begins.
The primary concern of many buyers is a building’s MEP – mechanical, electrical and plumbing – systems. This makes sense, as a small business owner wants her customers and employees to have functional lights, bathrooms, elevators, and cash registers or computers.
However, there are a few other systems that are just as critical, if not more so, to a building that must not be overlooked by the next occupant. That’s why landlord/owner representatives must not only appreciate these three critical systems, but know exactly where to send your client for more information.
Questions You Should Expect from a Prospective Client
Interview questions are to be expected from prospective clients, since they are likely to make a significant monetary investment in the properties...
Top 15 Essential Questions to Ask a New Client
Whether asked conversationally or provided on paper there is a bundle of essential questions to ask when you encounter a new client. His responses...
3 Halloween Pop-Up Shops that Actively Seek Out Space
Halloween and costume stores can occupy some of the largest spaces that were vacated by warehouse stores and anchors. These seasonal stores typically sign leases in June and July, with move-in dates around Labor Day. While this is the typical timeframe for these pop-up shops, many are happy to talk about new locations year round. Whether you...
Commercial Real Estate Financing: Banks vs. Private Lenders
There is a myriad of factors that can affect whether or not a borrower can obtain a commercial loan. Those who fit within the strict parameters set out by most commercial banks usually enjoy a lower interest rate and a few other perks. However, those who do not can still successfully secure financing, often with more freedom but higher interest...
Verification Documents Needed for a Commercial Mortgage
Commercial mortgages, like residential mortgages, require the borrower to jump through a fair amount of hoops in order to secure significant funding for their desired property. This includes numerous verification documents that will confirm, among other things, the borrower's income, assets and debts.