Real Estate Agents – Strengths and Weaknesses in Listing Commercial Property Today

In this commercial property market there are some real pressures and challenges that confront a lot of property owners when they want to sell or lease their property. They need the help of top agents that really understand the local area, to help in moving the property.

Contrary to popular belief, it is in markets like this that good agents can make a lot of commission. It all comes down to the way in which they package their services and help their clients.

In simple terms, top agents and experienced agents can do very well today providing they work the local area and their database. A good database will always get you through any market conditions and frustrations. In saying, that I am a big believer that a salesperson’s database should not be delegated to the office administrative staff to control.

Every salesperson should take ownership of their database; in this way they will get good activities from it. In this market you need leads that you can do something with. When a database is passed over to the administrative staff to control, the inevitable result is inaccurate and old data. The database soon becomes redundant. The salesperson doesn’t keep it up to date.

Become Change Agents

So we are the ‘agents of change’ when it comes to helping our property clients an owners get results in this market. We should know how to attract the right people to every property listing that we take on. Exclusive listings are more important in today than ever before. Some top agents will not take on ‘open listings’ for the very reason that they are a waste of time and effort.

When you know the drawbacks of the industry and the listings today, you can offer the clients that you serve some solid solutions. So what are the drawbacks? Here is a list of some of the bigger ones:

  1. The time that it takes to sell or lease a property can be longer today. Every client has to be conditioned for the best price or rent so the time on market is not lengthened. The first few weeks of every marketing effort are the most important. Position the property correctly to get the best enquiry in this time.
  2. High prices and high rents will achieve nothing. The price or rent for the property should be optimised for enquiry. You have to do more with less when it comes to marketing and inspecting of properties.
  3. A larger number of competing properties can frustrate your marketing efforts and time on market. Check out these properties before you do anything with your listing.
  4. Buyers and tenants are slower to enquire, inspect the property, and then make a decision. Your skills with each stage of the listing should be optimised. Hone your skills accordingly.
  5. Limited finance can put some ‘brakes’ on the larger deals. Find out where your prospects can get finance from and what the criteria of approval may be.

Whilst these may be drawbacks in the market, they are also opportunities for agents that can get focused and organised. Every problem is an opportunity in disguise.

Are you a solution provider in this commercial real estate market? Top agents are just that. You can be too.

How to Successfully Develop Commercial Real Estate – Part 3

In Part 1, we pointed that the fundamental component to a successful development is money. In Part 2, we demonstrated that the single most important factor to the lender and the investor is the belief they will get paid back. The most reliable way to prove to investors that they will get paid back is to attract rent paying tenants to the project. The tenant is the most valuable asset in any commercial real estate development project. The tenant is the person or entity that will enter into a long-term agreement to pay rent, rent creates cash flow and cash flow help lenders and investors form a reasonable belief they will get paid back. Of course, investors also want to see tenants with long history of success, solid financials, well established brand and willing to sign a long term lease agreement. The lease agreement is probably the most important document a developer can produce. However, getting a tenant to sign a long term lease is not that easy. Remember the building(s) is not yet built and probably will not be for a couple of years.

So how does a developer find these coveted tenants and get them to sign a legally binding contract to pay them rent in a building that doesn’t exist yet? Often, the fundamental component to attracting prospective tenants to a development project is location, what this author refers to as the where principle. The generally accepted mantra for putting a real estate project on the right track for success is location, location, location. Pick up any article about real estate, look at any Web site, or watch any show on television today and you will find that most real estate decisions are based on location. Location is probably the single most important factor for attracting and retaining tenants, especially, desirable, financially stable tenants.

However, location is relevant to what you are planning to develop and whom you are developing the project for. As the developer, site selection or location should help you focus on the key benefits to the tenant. Application of the where principle to a prospective site will result in a detailed analysis of the market that surrounds, encompasses and makes up the development area. The surrounding demographic information and comparable, competitive project data should strongly support the new project and the intended use. Finally, it should strongly demonstrate to the tenant how the proposed site will be important to the success of the tenant’s trade or business. Focus on the location and the location information most important to the tenant and getting them to sign a long term lease agreement will be much easier.

We will examine the where principle in more detail and all of the five basic principles to developing commercial real estate and how these simple principles will demonstrate how to buy the land, build the building, attract tenants, be a landlord and buy or sell a commercial real estate project.

What Is Commercial Construction?

The term commercial construction is used to refer to any kind of construction project where the eventual outcome will be a commercial property rather than a residential property or industrial property. It can include warehouses, hospitals, sports centres, shopping centres and hotels, as well as some types of reconstruction and refurbishment of historic buildings. One commercial construction firm may not necessarily be responsible for all aspects of the creation of a commercial property from conception to completion, and a variety of different people may be involved, however some well-established construction firms are able to take complete control of all aspects of the construction process.

Commercial properties differ from residential properties because commercial properties are not intended as full time homes, and therefore the needs, rules and regulations connected to commercial properties differ from those associated with residential properties. Those who are wishing to build a commercial property, or adapt a former residential property into a commercial property are usually required to get planning permission in order to be able to do this. If special planning permission is required, it must be properly obtained before any physical work is carried out, or else the owner may be required to undo or remove all the work which has been carried out.

There are different types of commercial construction companies available. Some construction companies will only be contracted once planning permission is received, and once all surveying etc has been called out at the place where the construction will take place. These companies will work according to the pre-approved architectural blue prints which have been commission by outside investors who wish to develop or build a property for commercial use. Other types of commercial construction company will take charge of the whole process from conception to completion, having either designed and funded the project themselves, in the hope that they will be able to sell or lease the property when it is completed, or having been contracted out by a private investor.

It is one of the construction company’s responsibilities that all commercial properties adhere to all local commercial building regulations, and if any of these regulations are not adhered to fully, then the construction company may be liable for any damages. In recent years, building regulations for commercial properties in many countries have been extended to take into account changing environmental standards.

As well as being partial responsible for the health and safety of those who will use the commercial property once it is completed, commercial construction companies must take partial responsibility for the health and safety of its own workers. Any building site is a dangerous place to be, so it is important that all workers in construction companies understand the rules and regulations which are put in place and designed to help to keep them safe. All construction workers should be taught the importance of wearing the correct protective clothing whilst they are on the building site or using building equipment: hard hats and high visibility jackets can help to save lives.

Why Efficient Appraisers Are An Imperative When Dealing With Property Transactions

The need for an efficient and experienced appraiser is imperative, whenever you purchase or sell some property. The prime purpose of hiring a property appraiser is to find out the accurate and fair market value of the concerned property. An efficient property appraiser is skilled in evaluating any kind of property. Many banks, mortgage companies, and similar loan lending institutions require proficient appraisers to find out the real worth of a home their clients are buying in order to ensure that they are not sanctioning more money than they can recover.

An expert real estate appraiser will be skilled in considering all the aspects while evaluating a fair value of the property. Generally, they will consider local real estate sales data, property features information, and current prices of the homes in the same area. The property features may include unique architectural characteristics, or special home improvements. By considering all these aspects, the appraiser will offer a fair value of the concerned house.

Reputed property appraisers will offer a proper and justified opinion on the value of a real estate property, no matter whether it is a residential or commercial property. Their opinion is based on the highest possible value and the best possible use of a real estate property.

A proficient residential real estate appraisal service will consider each property individually, thoroughly evaluating the interior and exterior of the home, and even consider the surrounding environment and neighborhood and the crime statistics of the particular area when appraising a residential property. They will consider both the improvements as well as faults when determining the appropriate value of a property.

Every appraiser has his own process and techniques for gathering data, analyzing it, and giving an expert opinion on a particular real estate property. If you hire four different appraisers to evaluate a property, you will get four different opinions on market rate of a particular property but all of them will fall within a similar range of value.

If you run a business in a commercial real estate area, or if you are planning to set up a business on a specific property, the commercial real estate business valuation services can help you to know an accurate and fair market value of your business or prospective business.

Real estate appraisers can give you a sound opinion with regard to the property you are interested in within a minimal time span. They can even play an active role in identifying and informing you about the property seller’s misrepresentations. Their advice is worthy not only for buying property at a fair rate but also for protecting yourself from falling prey to the seller’s deceptions.

In this way, the expert appraisers prevent you from paying unreasonable prices, getting a home with several hidden faults in it, buying a home in an unfavorable and inaccessible location, and being a victim of home seller’s misrepresentations. With the sound advice of the appraisers, you won’t repent on your decisions concerned with property sale and purchase. This is why property appraisers are an imperative need for anyone handling any kind of property transactions. Make sure that you hire some renowned real estate appraiser when buying or selling a desired property in order to secure a safe and fair property deal.

Choosing The Right Architect For Your Commercial Real Estate Development

A good real estate development starts with the right architect. An architect is concerned not only with the concept but also the planning as well as designing of a building or any real estate development. A degree in architecture equips one with the knowledge of the building and operational codes that are to be adhered for every architectural design.

An architect is trained such that he/she transforms a user’s needs and demands into design and eventually into physical form. This implies that he/she should have complete training that will aid in the building of safe and healthy construction for people and the communities. Architects have to obtain licenses to practice architecture as their building designs and planning decisions play a vital role in the safety and security of the public.

Architects specialize in different fields among architecture i.e., land, land development, buildings, office parks, residential, landscape and the like. This specialization is a result of the increasingly fragmented, demanding and concentrated world. Thus, it is difficult for a single architect to be aware of the know-how of each of these fields and to accommodate the distinct demands of different clients.

An architect plays a very significant role in a project from its conception to its construction. The final physical form of a building or any real estate development is designed by an architect who obviously considers the desires and needs of the client. As such, it is important to choose an architect who is well qualified as well as experienced in the specialized field of your choice. An architect who has been in business for at least 5-10 years must have developed a strong foundation of relevant concepts. He/she must possess the skills, knowledge and experience needed for a decent and fascinating project. This indicates that it is essential to review an architect’s qualifications prior to selection; his/her degree, experience and license – all should be checked before one hands over the project. An important point to note is that he/she should be experienced for five plus years in the particular field of the development project and not just as a general architect.

Having said the significance of educational qualifications, it is time to review an architect’s affiliations and accreditations. An achieved architect should also be affiliated with a reliable institution, for instance, the American Institute of Architects (AIA), Royal Architectural Institute of Canada, Royal Institute of British Architects and the like. Affiliation with such institutes demonstrates an architect’s credibility and popularity in the industry. An architect who is affiliated and accredited by similar professional architectural organizations has certainly passed their comprehensive requirements. This is a strong recognition and a proof of their achievement. However, mere affiliation is not the only consideration before choosing an architect. Other relevant factors and elements should also be considered so that the ultimate decision is made bearing all concerns in mind.

Geographical area of specialty is also an important element. Some architects are specialized and well-aware of certain area(s), and as such their scope is quite limited to those areas. Although he/she may excel in architecture and the particular area(s), this does not ensure that he/she will be able to deliver equivalent results in the area of the project’s requirement. Thus, this aspect should also be kept in mind.

Certain other conditions are also relevant as they ascertain whether a project will be successful and simultaneously whether the relationship between the client and the architect is sound and pleasant. A good architect should possess good communication skills and should be responsive of the client’s questions and/or queries. This is a very important factor, which ensures the completion of the project on time and on good terms. For your relationship with the architect to be successful, the architect you ultimately select should, by all means, follow up on calls and emails and should keep his/her word on different aspects related to the project.

An architect’s connections are a reflection of his/her success and achievement as well as political and negotiation skills. One who is well connected and has contacts like city planners and those in political processes is most certainly preferred as opposed to his/her counterparts with relatively few connections and contacts. Yet another factor is an architect’s membership of local clubs as the Kiwanis, Toastmasters, Knights of Columbus, Rotary etc. An associated member is most certainly a better candidate.

Each one of the above mentioned factors are important considerations for an investor or a customer prior to choosing a suitable architect. At first, it might seem difficult to find architects with all qualifications but there are ways. You can talk to developers, other popular architects, city planning and building departments, local economic developments, chambers of commerce etc and ask for references. Similar references cal also be obtained from experienced customers, sellers and buyers. The advent and popularity of the Internet has opened previously unknown avenues for obtaining information. The Internet can be a source of information, details and contact about reputable, qualified and experienced architects. The websites of architectural professional organizations may also list prominent architects in different regions.

A good architect is the key to any real estate development. Once a solid relationship and understanding has been established with the right architects(s), the entire process of idea generation, conceptualization through to final construction becomes simpler and satisfying. A good architect is aware of all reasonable specifications and is filled with ideas that form successful real estate development strategies. Thus, it is absolutely imperative to choose the right architect – one who is aware, experienced and reputable.