Guidelines for Commercial Real Estate
Should I use a Real Estate broker? Or should I handle my needs myself?
The processes by which real estate decisions are made in the commercial market vary widely. Some companies make real estate decisions using the most rudimentary approach, while others undertake an exhaustive and painstaking analysis to ensure every detail of a real estate decision is thoroughly understood before making the deal. Both extremes of the spectrum can be the right strategy to employ, but make no mistake about it… money is left on the table, and favorable terms are foregone more often than people realize when the transaction is handled by intelligent people who do not engage the services of a competent real estate broker.
The professionals of InSite Real Estate Group apply over 20 years of real estate experience into every assignment. As our client, we ensure you benefit from the knowledge we’ve gained as we pursue the terms best suited for your needs. And, while we’re efficiently applying our knowledge and expertise to your real estate needs, you’re saving time and doing what you do best, serving your customers.
General Representation Arrangements in Commercial Real Estate
It is important to understand the role of the real estate agent in a transaction. Real estate agents typically represent their clients under three basic arrangements:
- Landlord/Seller Agent
Fiduciary duty to represent the interests of the Landlord (in the event of a lease transaction) or the Seller (in a sales transaction).
- Tenant/Buyer Agent
Fiduciary duty to represent the interests of the Tenant/Buyer.
- Transaction Broker
Facilitates the transaction without representing any party and without disclosing confidential information from either party.
So, what should you look for when you’re in the market for Real Estate?
Here is a summary of some selection criteria for the 4 most common classifications of property.
Selecting Office Space: When selecting office space, multiple factors should be considered. Office space is a tool not unlike other tools to be utilized in your business. The key to selecting the right office space is to identify and include those factors that are most important to the success of your business. Some basic factors to determine might be:
Suburban? Downtown? Rural?
- Building type
Single-tenant? Multi-tenant? Single-story? Multi-story? High-rise?
- Building features
Flexible floor plan? Modern heating and air conditioning system? Network wiring? T-1 Connection? On-site management? Exercise facilities on site? Attractive facade? Safe, plentiful and well-lit parking? Life-safety systems? Drive-up parking? Adequate signage? Other tenants in the building?
- Building services
Nightly janitorial service? Maintenance? Recycling? UPS / FedEx / DHL on site? Conference facilities?
- Area features
Close to restaurants, hotels and other services? Close to customers? Close to employees? Convenient to interstate transportation?
These are just some of the factors to consider as you decide upon the best solution to your office space needs. The expert advice you receive from an InSite professional helps to ensure your space needs are met with the utmost attention to your company’s unique needs.
Selecting Retail Space: Perhaps more than any other type of real property, retail real estate is governed by the cliché of location, location, location. A great location for a retailer can yield substantial financial benefit, while a marginal location can make management fire the site location department when sales go elsewhere. So, what can you do to help avoid disaster? Here are some factors to keep in mind:
Who are your customers? Where do they live/work? Where they are most likely to shop?
- Property Type
Free-standing? Strip center? Neighborhood center? Power center? Regional mall?
- Lease Type
Triple net? Full service?
- Traffic Counts
- Adequate Parking
- Store Dimensions
- Ceiling Height
- Available Signage
- Fit-out Allowance
- HVAC Condition
- Quality Management
The retail specialists at InSite can assist you with the evaluation of all of these factors and many more.
Selecting Industrial Space: Users of industrial space can vary widely in terms of the specifications for their facilities. Much of the facility requirements will depend upon the specific business function of the company. Some of the basic characteristics to be considered when evaluating industrial property includes the following:
- Construction type
- Ceiling height
- Floor thickness
- Dock-hi or ground level configuration
- Number and size of overhead doors
- Column spacing
- Climate-controlled requirements
- Sprinklered or un-sprinklered space
- Electrical power requirements
- Rail service
- Proximity to interstate transportation systems
- Parking lot thickness
- On-site storage for product or equipment
- Fenced and secure areas
- Security system
- Environmental hazards (on-site and off-site)
The professionals with InSite Real Estate Group have considerable experience with assisting industrial users and owners in making sound investments in industrial space. Give us a call and let us know how we may assist you today.
Selecting Undeveloped Land: Land acquisition for commercial use is often one of the more complicated projects facing our clients. The process of acquiring land is simple, but the due diligence process can be complicated and full of physical and non-physical barriers. Take a look at the list below of some of the more obvious factors to be considered when buying or selling commercial land:
- Availability of utilities
- Ingress and egress restrictions
- Easements, setbacks and other restrictions
- Environmental Condition
- Soils Condition
- Flood Plain or Floodway designations
- Storm water retention requirements
- Neighborhood opposition
Let a professional with InSite Real Estate Group help you with navigating through the obstacles to your site acquisition project. We can assist you with site location, vendor selection (for engineering, platting, construction, etc.) and many other factors that get you from concept to completion.
The key to selecting the right office space is to identify and include those factors that are most important to the success of your business.