Are you ready to buy your first piece of commercial real estate? If so, you may have many questions ...

1. Manage Your Efforts With Commercial Real Estate
Intelligently Using These Tips
Are you ready to buy your first piece of commercial real estate? If so, you may have many questions
about the process of acquiring property. The following tips will help make you more confident in
your commercial property searches.
Before you make a large investment in real estate, take a look at local income levels, unemployment
rates and the expansion or contraction of local employers. If you're looking at a property that's close
to things like a university, employment centers, or a hospital, they're likely to sell fast, and at a high
value.
Location is just as important with commercial real estate as it is with residential properties. Pay
attention to the property's surrounding neighborhood. Cross-check similar areas to see how they are
growing. Since you will likely still own the property in ten years, you want it to be located in an area
that is likewise still desirable in ten years.
When choosing between two similar commercial properties, think large scale. Finding the right bank
to finance you might be hard, even if you are going for a smaller building. This just reflects the
general advantage of buying anything in bulk; when you buy a property with more units, you get a
lower average price for each one.
Learn about Net Operating Income, or NOI, a metric in commercial real estate. In order to be
successful, you will have to make sure that you never dip into the negative.
If you want to rent your commercial property, well built solid buildings are your best bet. You will be
able to attract tenants for these properties more quickly due to the fact that they will know the
building is well maintained. Maintenance is also easier, because these buildings require less repair.

2. You need to advertise that your commercial property is for sale to both locally and non-local people.
A lot of sellers fall into the misconception that only the local buyers are interested parties in
potential purchase. Many private investors are willing and able to purchase properties outside their
immediate community if the price is right.
Know what your specific needs are prior to starting your commercial real estate hunt. Write down
what features are most important to you when you look a piece of property, like the square footage,
the number of offices and conference rooms, and bathrooms.
You must know how to deal with an emergency, should it arise. Inquire with your landlord about who
handles the emergency repairs in the space you rent. Know their phone numbers and also what their
likely response time is going to be. Ask your landlord about emergency procedures to design the
best plan possible to face any emergency.
In commercial real estate, there are different kind of brokers. Full service brokers work with both
landlords and tenants and there are agents representing tenants only. You may be helped much
more with a broker who just works with the tenant, as that person most likely has more experience
in handling tenants successfully.
In the beginning phases of your career as an investor, limit yourself to working with a single type of
investment. Pick out just one type of property to begin with and then give it all you've got. Generally
speaking, you'll maximize your profit if you first become an expert in a single property type rather
than a dabbler in many.
Consider any tax benefits you'll receive through a commercial real estate investment. In addition to
depreciation benefits, investors can receive interest deductions. "Phantom income" is when an
income is taxed but never received as cash, by the investors. You need to know this kind of income
prior to investing.
Before you purchase a property, talk to a tax advisor. A tax adviser can tell you what your tax
liabilities are on the purchase and future income from it. Let your adviser help you find a building
that won't require you to pay too much in taxes.
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Dealing with commercial real estate will be a breeze for you now! If you felt confident before, you
should feel even more so after reading this article. These tips should give you a firm foundation from
which to spring into a successful commercial real estate career.