Trading in Commercial Property...
Are you ready to purchase your first commercial investment property or are you thinking of selling a commercial property? Your Whyte Properties commercial REALTORS® possess expert knowledge of comparable prices, neighborhood trends and commercial market conditions.
A Whyte Properties commercial REALTOR® has the expertise, the negotiating skills and industry knowledge to help you with the required due diligence which is so critical in selecting that new commercial investment property.
A Whyte Properties commercial REALTOR® will help you determine the best course of action to maximize the sale price on your property and find the best possible buyer.
Selling a commercial property
So...the time has come. You have held your commercial investment long enough and you have decided to sell. There is no real best time of year to sell a commercial investment ... the best time to get maximum value is when there is no known outstanding capital expenditures on the books and the property is fully leased.
There are a few things you should probably consider
Have you come up with a realistic benchmark on how much the property is worth in today's market?
Have you considered the different methods available to you to sell your property?
What type of marketing and advertizing do you have in mind for your property?
Are you interested in marketing to a specific type of purchaser or open to any prospective buyer?
Have you given consideration to all the services (financial, tax and legal) you will need to close the sale?
Your Whyte Properties representative will help you answer these questions (and many more). We will gladly guide and support you all the way through this complicated process.
Remember a well maintained and managed commercial property will likely present the best value for the new owner and the best return for you. A commercial property is much more than simply land, bricks and mortar. The rule of thumb in the case of investment properties is the better the tenant(s) and the longer the leases, the higher the price someone will be willing to pay because the risk to the new owner related to income is mitigated.
Once you have made the decision to put your commercial property for sale, your Whyte Properties agent can help you with this rigorous undertaking.
Purchasing a commercial property
Experienced investors know and understand the advantages and benefits of commercial real estate as an investment. Commercial properties are complex and multi-faceted. They can post compelling economics but a key to critical success is understanding their dynamics.
Beside the inherent value of land and brick and mortar, commercial properties are businesses with revenue and expenses. Understanding the balance sheet, scrutinizing the income statement and the cash flow analysis are key factors to achieving a reasonable Return on Investment (ROI). Whyte Properties will help you identify issues that can degrade your commercial investment over time.
Tenants are a commercial property primary source of income. In sourcing the right property for you, Whyte Properties will find answers to key questions in order to validate the ROI of your commercial investment over time.
What do the leases look like? Are they long term? How long? Are the tenants strong?
Are the rates fixed? Do the leases include balanced clauses?
How much protection do they offer you?
What condition is the property in?
We will go look at the property and we will ask you to do the same. We will talk to the tenants and request a property inspection.
Are you considering managing the property yourself or hiring the services of a property management company?
What is the long term potential of the area?
You want to protect your revenue stream therefore a stable area or a rising economy in the area with good future prospects increases your ability to attract new tenants and maintain your revenue stream.
Whyte Properties will help you answer these questions (and more) so you are better prepared to evaluate the long term return on your commercial investment.