Commercial Real Estate FAQ's
I work with a diverse range of clients, including:
- Businesses seeking commercial space
- Landlords looking to lease or sell properties
- Investors interested in purchasing or selling commercial assets
- Property owners needing support for property management or redevelopment
Do I really need a commercial real estate broker?
Yes, working with a commercial real estate broker offers valuable benefits. I ensure your lease or purchase terms are optimized, pointing out critical details, negotiation points, and market insights to protect your interests.
How do commercial real estate agents get paid?
Typically, the property owner pays the broker’s commission, meaning my services are often free for tenants or buyers. In rare cases, a buyer might cover a fee, but generally, sellers and landlords take on this responsibility.
What value do you bring to the table?
I simplify the complexities of commercial real estate, saving you time and effort. My network includes landlords, brokers, and unlisted properties, providing a wide market reach to help meet your needs.
What should I consider before leasing commercial space?
Key factors to consider include:
- Future plans for the property: Is there a demolition clause or sale in the works?
- Landlord reputation and tenant feedback
- Potential concessions, such as free rent or tenant improvement allowances
What is CAM (Common Area Maintenance)?
Common Area Maintenance (CAM) charges cover shared expenses like taxes, insurance, and landscaping. Review the CAM breakdown carefully to avoid unexpected charges and ensure transparency with the landlord.
Why am I expected to improve the property when leasing “as-is”?
Landlords often prefer tenants to handle specific improvements to suit their needs. Unless a tenant has substantial financial backing, landlords typically pass these costs to tenants, as improvements are often unique to each business.
What are Tenant Improvements, and who pays for them?
Tenant Improvements (TIs) modify a space to fit a tenant’s needs, such as custom layouts or upgraded fixtures. The cost can be covered by the landlord, tenant, or through an improvement allowance, depending on the lease terms.
What is a commercial real estate cap rate?
The Capitalization Rate, or “cap rate,” measures potential return on investment by dividing the property’s net operating income by its market value. It’s a key metric for evaluating income-generating properties.
What should I consider before investing in commercial real estate?
Before investing, consider your financial resilience, analyze current market trends, select a strategic location, and ensure the property aligns with your long-term goals.
