Commercial Property Investment - What You Should Know Before Diving In

Commercial property investment can seem like a daunting business to get into. With so many constant fluctuations in the market, changes to the economy and other developments taking place, it can be difficult for even a property investor with some experience to keep up.

If you're just starting out in the realm of property investing, or have some experience but are looking to expand on your prospects, there are a number of things to consider before you even begin searching around for potential properties and offices for sale.

Decide what exactly you want to do - If you're already involved in residential real estate, think about whether you want to move entirely to commercial property investment, or dabble in both areas. You'll need to understand the differences between the commercial and residential property investing, as this may affect your finances and planning. Some people start off their ventures with residential property investment, as deposits tend to be smaller, and loans are slightly easier and cheaper to acquire, with lower rates. Commercial leases have different terms, so make sure you're aware of these.

Do your research - Just like basic knowledge of the differences between commercial and residential property, be sure that your knowledge on all things real estate is up to speed. Make sure you're familiar with relevant definitions, terms and current market trends, especially if you're fairly new to the market. There are plenty of online resources and real estate companies which offer advice and information on their websites. Keeping up to date with business and finance news is also paramount.

Speak with professionals - If you know people involved in commercial property, there's no harm in asking them for advice on where to get started. Even if you don't know anyone, with so many online blogs written by commercial property experts, there's no excuse not to have access to up-to-date, first-hand information. Insider info is also important if you want to know things like the kind of companies that are looking for office space for lease, industrial property, or serviced offices.

Article Source: http://EzineArticles.com/?expert=Julie_Mak

At Excel Commercial Inc we strive to provide the best solutions for our clients Commercial Mortgage and Business Loan financing needs as well as residential mortgage and lines of credit for our Self Employed, Business Professional and Real Estate Investor clients.

As your mortgage broker we work for you, our client, and not the lender.

Please contact me directly if you have any questions or require any additional information.

Sincerely,

Ahmed A. Assaf, Broker

Excel Commercial Inc.

Direct (780) 940-5707

Commercial Real Estate - Investing Right

Investing a commercial property is one of the biggest investments that you could have. It is an investment that requires you huge amount of money and of course effort in finding the right one. And since it is one of the expensive investments that you could have it is important to give your time and effort in finding the right one.

The type of property that you will purchase will determine the success of the business because it will be used to house your business operation. It is always important for every business to have a stable foundation if you want to maximize your profit and be successful. Being visible to your target market will let you to have a solid impression that will improve the credibility and popularity of the company. And for this reason, it is always important to pick the right Florida commercial real estate property for your business and it is important to start it with a little planning.

The first thing that you need to consider when planning your biggest investment is the location and the type of Florida commercial real estate property that you are planning to buy for your business. And if you are trying to search for the best location for your business, then the Sunshine State of Florida has always been the popular place for those investors who are planning to set up their down business. And it is always an advantage for your business to pick the best city that will become the market of your business.

Another important factor to consider is the type of Florida commercial real estate property that you need to acquire. Now there are abundant of high-rise buildings in Downtown Florida and it will be beneficial to pick the most accessible to your potential market. Aside from those office spaces there are also IT parks, industrial facilities, retail space, warehouse and other recreational structures and resorts.

While searching for the right Florida commercial real estate property, it is very important to consider the type of business you have and make sure that it perfectly fit with the operation and nature of your business. You have to pick the property that can accommodate the business operation as well as your personnel in order to perform effectively their duties and responsibilities. And as you consider this important factor when choosing the right commercial property, you can be sure to achieve success.

Article Source: http://EzineArticles.com/?expert=Ella_Ayson

At Excel Commercial Inc we strive to provide the best solutions for our clients Commercial Mortgage and Business Loan financing needs as well as residential mortgage and lines of credit for our Self Employed, Business Professional and Real Estate Investor clients.

As your mortgage broker we work for you, our client, and not the lender.

Please contact me directly if you have any questions or require any additional information.

Sincerely,

Ahmed A. Assaf, Broker

Excel Commercial Inc.

Direct (780) 940-5707

4 Advantages of Becoming a Commercial Real Estate Investor

If you've flipped houses, you know it can be a lot of work. And once you've flipped the house, you start over again. It gets old, fast.
Think of the house as a cow. You raise it, kill it, eat it. Repeat.
If you're tired of the hunt and kill approach and wonder about the advantages of becoming a commercial real estate investor, there are two words you should know - cash flow.
Think of the commercial property as a cow you raise, nurture, and milk.
Here are 4 advantages to becoming a commercial property investor: 


Empires are built on cash flow. That's why the investors, such as Trump, Zell, Zuckerman, are commercial real estate investors. They know that by applying leverage, the same principles you use when flipping houses, and some planning, you build your commercial real estate empire.


Cash flow pays you over and over again. Cash flow forgives. Commercial property investors take advantage of the opportunity to survive risk. When they make bad investments, they insure the downside with a recurring base of income. That means they live to make another deal.


Shelter your income. The IRS allows you take 2 deductions that reduce your tax liability: the mortgage interest deduction and cost recovery (depreciation) deduction. This means that reduce your income taxes by the interest and cost recovery you've taken. You have more money left in your checking account.

Cash flow + Financial Independence = Time. You have the same 24 hours, 7 days in a week that everyone else does, including the most successful person you know. With your commercial properties providing you with cash flow, you enjoy free time, a meaningful life, relationships, and experiences.

Article Source: http://EzineArticles.com/?expert=Jeremy_Cyrier 

Excel Commercial Inc - We are your Commercial Mortgage & Business Loan Broker Expert. Please call us 780-940-5707 for any borrowing needs.  
 

The Differences Between Class A, B and C Business Properties*

When you are shopping around for business property, you can find yourself really confused by all the terms and ideas you encounter. In most cases, your experience with commercial property has been rather limited, so staring at words you don't understand in contracts and advertisements can really throw you for a loop. It's important to conquer these terms as a way of making a better-informed decision.


One of the things you see a lot when looking at commercial property is classification grades. You see Class A, Class B and Class C properties. While this might not mean anything to you at a glance, the truth is that the differences between these are important, not only in where to start your search, but also how much you should expect to pay to rent the property. Here is a break down on the difference between these three grades.


Class A
These are generally the highest quality building in their area. In some areas, these include buildings that were constructed after 1980 and are over 100,000 square feet. They usually are ready for business and have the appropriate amenities. They are often part of a defined and accessible location. They require the highest rent and might be selective about the businesses they rent to, more so than a B or C class commercial property.


Class B
These buildings are almost always found in a good location. You'll find Class B properties in a safe neighborhood where there are good property values. They are buildings that might have been renovated in the last few years. These buildings are popular for those interested in buying buildings. They can often be renovated to Grade A status. The rent on these is of a lower grade and business owners can often lease them at a very fair price.


Class C
These buildings are the bargain basement buy of the industry. They tend to be in lower income areas and are often not well kept or renovated. They are older buildings and can vary in size. These are often the buildings of choice for newer businesses that are just starting off, because they're on a limited income. They are for businesses where location doesn't matter much.
It's important to note that building and property grades can change from market to market. There is no specific and universal standard for grading buildings. So while something might be an A grade in your city, it might be a B or C grade in a place like Manhattan. While these grades may change, the basic spirit of these classifications remains.


Again, these are just the generalities for these buildings. They may vary from market to market. It's best that you take into account the property values of these areas when determining what a fair rent for the building is.

At Excel Commercial Inc we strive to provide the best solutions for our clients Commercial Mortgage and Business Loan financing needs as well as residential mortgage and lines of credit for our Self Employed, Business Professional and Real Estate Investor clients.

As your mortgage broker we work for you, our client, and not the lender.

Please contact me directly if you have any questions or require any additional information.

Sincerely,

Ahmed A. Assaf, Broker
Excel Commercial Inc.
Direct (780) 940-5707
Fax 1-866-858-8664
www.excelcommercial.ca
twitter @ExcelCommercial
Suite 508 Oxford Tower
10235-101 St NW
Edmonton, AB T5J 3E8



Find out more from the Business Property website.

John Baldoni is the CEO of BusinessProperty.Net, which is an online commercial real estate and investment property listings service. We offer agents, building owners, landlords, and property managers the ability to list their property for sale, lease, or rent. We offer affordable prices and aggressive marketing to allow agents and property owners to list commercial properties for sale or lease.

*Article Source: http://EzineArticles.com/?expert=John_Baldoni 

  

Inspecting Commercial Property - How to Do It Like a Pro

When you inspect a commercial property for the first time, understand the precinct around the property first.  When you look at this effectively, you prepare yourself for the in-depth inspection of the premises themselves.

Look at the precinct before you look at the property and assess its potential for sale or for lease. This list will help you with the process. So let's look at some of the big issues that need to be understood at the earliest stages of inspection. They are:

• The unique location of the property should be reviewed with due regard to access roadways, highways, services, and amenities. These will all have impact on the occupant of the property. They will also make the property more or less attractive from the occupancy and sale aspect.
• How close is the property to being obsolete? If this is a problem, a refurbishment strategy may be necessary. It should be said that a refurbishment should only be considered if the regional demographics and business community is sufficiently active and growing. If in doubt it is better to consider fuller redevelopment to an alternative or newer property.
• The age of the property will create a degree of deterioration and depreciation when compared to the price of a new property of similar size and type. When you know how much a new property is worth then you can apply a fair and reasonable adjustment factor to the subject property given deterioration and depreciation.
• Physical risks in the area need to be assessed. These are risks that can be from creeks and rivers, ground slippage, storm water, and environmental events. Many properties have been discounted in sale price simply due to the proximity to rivers and creeks due to flooding.
• The property will have a particular use which is allowed under the zoning for the area. This should be understood and optimized. The question to ask here is whether the property is being used to its fullest capability that the zoning allows. If not, then there may be future income opportunity in the waiting.
• Building codes and compliance will apply to the property improvements. Importantly the property should have no outstanding orders or notices that need to be rectified. If these things do exist, then they should be rectified and removed prior to any sale or lease promotion. If in doubt ask questions of the building authority.
• Environmental concerns and contamination is a big issue today. Engineers and experts can be employed to investigate particular properties of concern. This is a common event when it comes to industrial property. One example still existing in many properties is asbestos. If there is any doubt as to the existence of these environmental concerns or contamination, it pays to bring in the experts before the property is taken to the market. Site remediation will help improve the price that the owner can achieve for the property sale.
• Supply and demand relates to the amount of lettable commercial space available in the area. This will vary subject to the amount of vacant land and or the amount of land available for redevelopment. Both of these things create pressure on prices and rents for existing property in any precinct. They affect the investment future.
• Comparable properties exist in any market place at any time. Their location and impact on any new property listing that you are to be working on, should be identified before the campaign starts. Part of this consideration will be the time on market that they take to sell or lease. You could very well experience the same time on market unless you adopt a new and different promotional strategy. If in doubt be a better promoter of property than others that surround you.
• The intervention of government rules and regulations in any property precinct needs to be monitored. As a government or local council changes the rules and legislation in a property precinct you can see severe impact on prices and rentals. As a case in point, a council may choose to restrict parking in the street adjacent to a commercial property. If that commercial property does not have sufficient on-site parking, then it is likely that the property itself will become undesirable from a leasing point of view. Tenants will prefer to be in another location where staff and clients can park with convenience.

So these are some of the important issues to look at in any assessment of property marketability in commercial real estate. When you understand these things, you can more correctly consider the price, the rents, and the promotional strategy that the property deserves.

At Excel Commercial Inc we strive to provide the best solutions for our clients Commercial Mortgage and Business Loan financing needs as well as residential mortgage and lines of credit for our Self Employed, Business Professional and Real Estate Investor clients.
  
Please contact me directly if you have any questions or require any additional information.

Sincerely,

Ahmed A. Assaf, Broker

Excel Commercial Inc.

Direct (780) 940-5707
Fax 1-866-858-8664

www.excelcommercial.ca

twitter @ExcelCommercial

Article Source: http://EzineArticles.com/?expert=John_Highman