Buying industrial real estate could be the biggest investment one will ever make, also the riskiest one. However, the buyers often make costly mistakes by not analysing the hidden expenses. Some serious homework is required before making the decision; you cannot take last minute decisions.
You should be well prepared to negotiate with the vendor so that you don’t make any wrong decision. As leaders in commercial and industrial real estate, we always advise our clients to consider various aspects of a property before reaching a decision. Whether they are looking for a commercial property for sale in Melbourne or elsewhere, there are certain rule of thumbs that must be factored in. Inability to factor in these factors, could lead to some serious loss.
So, lets keep this straight. Follow the process below and we are confident that coupled with your intuition, these steps can help you in getting a good deal:
Think about your needs
The first step to start with is knowing your needs; this will help you negotiate with the vendors more effectively. Ask yourself questions and make a list of things that you need in your commercial real estate.
Here are a few questions you need to answer to know your needs:
What location do you need? The location depends upon how often your clients visit the office, the access to public transportation, retails stores and café and restaurants.
How much space do you require? Don’t forget to analyse the growth of the company; you need to know how many employees you are going to hire in the time ahead.
Start with these basic questions and you can move along the questions that popup when you answer them..
Set your Budget
Know how much can you invest in the commercial property; this can give you ease in negotiating with the vendor as you will be clear on what is affordable for you to buy, rent or lease.
To set the budget, take help with the accountant and the finance experts. You have to make sure how much cash are you investing and how much loan do you need. Research thoroughly and look for the options that suit you the best to finance your commercial real estate.
Take Professional Help
Find the best commercial real estate agents who can help you choose the best industrial real estate in the best price. An agent you hire should understand your needs; they should know the local market and the unlisted properties.
Investing in an excellent real estate agent initial stage of purchase can save a lot of dollars afterwards. They will research the market for you and look for the best space and location and also they can negotiate with the vendor for you.
Explore the ways to negotiate
It’s essential to learn the ways to negotiate before purchasing anything – a commercial real estate too. Here are a few tips for negotiating your industrial real estate purchase:
If you don’t need a central location, find remote areas, they are much cheaper than the ones in the commercial site.
Find properties that are specially designed for bank, restaurants or cafes. They are cheaper because of their specific design.
Try finding the properties of the owners who have not been involved in the market. You can save a lot by dealing secretly with the owner without an agent but remember, this is way riskier.
Visit the property and investigate
Don’t just look at the pictures and approve the property, visit it and study appropriately. You never know you can get something to bargain on.
Check if the renovations or repair is needed, or if you can expand the property without municipal restrictions. Another vital thing to get informed about is the age of the property. Get an idea about the amenities available in the space and adjust the price according to it.
Make an offer and work on contracts
Now that you are done with the research analyse all your findings and make an offer to the vendors. Before you close the deal, make sure you have all the essential documents such as utility bills, tax statements of the past five years.
Finally, sign a contract and make your purchase.
About the Author:
Christian Taylor, is a real estate agent associated with Just Commercial, a boutique real commercial and industrial real estate agency in Melbourne. The agency specialises in selling, leasing and renting of commercial and industrial properties in the South of Melbourne. Reach out to him reception[at]justcommercial.com.au