4 Effective Steps to Find Commercial Rental Properties for Sale
Commercial real estate investing is a big decision. No one ever said it was for the risk-averse; that’s for sure! Fortunately, commercial rental properties for sale typically offer a great return on investment over the long haul. You just need to know where to begin and how to find commercial space. Below, we’ve outlined four effective steps to uncover a profitable commercial rental property available on the market.
How to Find Commercial Rental Properties for Sale
Finding a commercial property that suits your needs is important, but it’s no small feat. Unlike residential real estate, commercial property listings aren’t found in a single database like the MLS. So, how do you find commercial rental properties for sale? The best way to find commercial properties is by hiring a licensed commercial real estate broker and commercial law attorney. However, if you’d like to start searching the market on your own, there are resources, as listed below.
You may want to see the commercial properties available in your ideal area, compare features and prices, and learn about the areas. Networking can also help you find resources and commercial real estate for sale. Visit your local Chamber of Commerce, or find local commercial real estate groups and associations, commercial property investment groups, or local BNI chapters. If you’re looking for commercial properties on your own, finding the right property in the right location, for the right cost involves time, effort, and much consideration. The following steps are helpful starting points.
1.) Research the Areas You’re Considering
Before searching the market for commercial rental properties for sale, start by performing basic research on the areas in which you are interested. The following list outlines some of the most essential points to consider. Once you focus on these criteria, you will have a better understanding of where you want to begin your commercial property search.
- Quality of the neighborhood
- Quality of the schools
- Crime rate
- Property taxes in the area
- Employment opportunities
- Local amenities
- Transportation and access
- Opportunities for future development and zoning ordinances
- Average prices of comparable commercial rental properties available in the area
- Average cost of rent for comparable rental units in the area
- Amount of residential and commercial real estate listings and vacancies in the area
- Insurance costs in the area
2.) Search Quality CRE Listing Sites to Find Commercial Rental Properties for Sale
There are thousands of commercial real estate listing sites online, but not all are created equally. Knowing where to find commercial properties for sale can save you a lot of time. Below we’ve listed the top 15 players to find commercial real estate listings.
You can also perform a commercial property search on our website to view the commercial listings available in our portfolio.
3.) Calculate the Expenses Involved with Commercial Rental Property Ownership
Now that you have (hopefully) found a few ideal commercial rental properties for sale, it’s time to crunch the numbers. Even though the properties you found may seem within your budget, the additional expenses may push your cost far over the line. You might have a notion as to what the local property taxes might be, but have you considered other factors – such as mortgage and the utilities needed to keep your property running? You may also have to hire a property management company to handle the day-to-day tasks of your property. Investing in commercial real estate is more than just making a purchase. You want to be certain that you weigh the dollars and cents to make sure that, in the end, everything makes logical sense.
Consider these costs typically associated with commercial rental property investment:
- Mortgage rates
- Rental property insurance
- Property management fees
- Maintenance costs
- Association fees
- Utilities, such as gas and electric
- Vacancy allowance
- Cost of property listings and tenant search
4.) Before Signing the Dotted Line, Visit the Commercial Property… Again and Again
As you may have realized from the items above, commercial rental properties for sale may look perfect on paper; however, they may not be ideal for your needs, goals, and budget. Below are a few tips that you should follow before signing on the dotted line.
- Visit the property several times, on different days, and at different times throughout the day. Your serene street may be an absolute nightmare at rush hour. Or what appears to be a hot spot may not have as much traffic as you envisioned. Maybe the street parking looks like there are more than enough spaces, but a meeting across the street twice per week may fill it up. Any or all of these potential issues can determine whether you have an effective rental property.
- Speak with current tenants (if any), as well as owners and tenants in neighboring properties. Find out how they feel about the area, your prospective property, and other neighboring properties.
- Bring a friend, family member, or close colleague with you to the commercial rental properties for sale that you’re interested in. This carries with it several benefits. The first benefit is that you won’t necessarily be focused on every minute detail at such an early stage. Instead, you’ll be looking at the overall condition, space, and layout, and envisioning any upgrades you may want to make. You may even imagine yourself as the owner and get excited about it. Having someone along for the ride may help you maintain some perspective on how you approach the property. They may also see things you have missed because they aren’t emotionally attached. Also, if you’re dealing directly with the property owners, rather than property management companies, it’s simply safer to have another person with you. You can never be too careful.
It’s not always easy to find the right commercial rental property for sale; however, if you take your time, do your research, and ask for help when you need it, you should be able to find the right place. Before signing on the dotted line, we advise you to hire a property inspector and commercial real estate lawyer.
OR… Hire a Trusted Commercial Real Estate Brokerage to Help You Every Step of the Way
Instead of performing your own research, commercial property search, site visits, and negotiations, hire a commercial real estate brokerage firm. Many problems that you might face by attempting to find and engage commercial rental properties for sale on your own can be solved by having an experienced CRE broker at your side. Commercial brokers can help you navigate the common (and not so common) obstacles that arise during commercial real estate transactions. They can help you determine an ideal location, narrow your search, ensure you’re getting a good deal, and help negotiate the fine details. A qualified commercial broker can help make the process easier and better for you.
Buying commercial real estate is only the first step in the process. Once you decide to invest, you have a long road ahead. Our experienced commercial brokers at The Robert Weiler Company believe that no one should have to tackle a commercial real estate investment alone. We can be a valuable partner when searching for and finding profitable commercial rental properties for sale. Speak with a commercial broker today by calling 614-221-4286. Also, inquire about our property management services.