Commercial real estate in Silverton as an investment can provide great returns, but it can also cause some serious headaches if you do not do your homework and go into the deal with your eyes wide open. Commercial property can include residential multiplexes and apartment complexes as well as more traditional business and warehouse buildings. Whether you are buying commercial real estate for profit or simply to house your own company, before you buy you should do all you can to avoid the following common pitfalls.
Have a Thorough Title Search of [tag]
Before making any commercial real estate lease, whether it is residential or commercial it is essential to get a complete title search to identify any liens or other problems with the title. The [tag] is basically the history of the deed changing hands and whether or not there are any unresolved claims to the deed by previous lenders or contractors.
Renting a warehouse (or a portion of a warehouse) on a contract basis may be the best choice for your storage needs. Contract warehouses are perfect for storing large items or a considerable number of items, especially those that will need to be protected. Normal storage facilities can’t offer the protection and the amount of space that a warehouse can provide. You can rent warehouse space or commercial property for short-term storage needs, or for long-term storage and distribution.
Renting warehouse space on a short-term basis is perfect for when you are trying to get your small business off the ground. You know you’ll need a place to store and distribute items, and using your basement or garage just isn’t going to cut it. A small business won’t need the vast amount of space of an entire warehouse, and conversely, will need more space than what a household garage can provide.
How Do you Select the Best Commercial Property for in Silverton?
Trying to understand commercial property lease terms can seem like navigating a mine field - there is plenty of new terminology and industry jargon to comprehend. When it comes to negotiating, some landlords may try to pass off a lease document as "a standard lease" that all tenants must sign. In many instances, unknowledgeable tenants could end up agreeing to terms that are less than favourable - which are in fact not standard policy. Be wary of the following clauses:
- Early Termination - this clause often allows landlords to terminate the lease early and reasons for the early termination may or may not be given. Resist the inclusion of such clauses in your negotiations.
- Default - be wary of onerous clauses that allow a landlord to evict a tenant if the rent has not been paid within a week of the due date. While it may seem standard, it is more typical for leases to stipulate written notice be given to tenants at least 14 days before any consequences are enacted. Negotiate for required written notice in the case of default.
- Redevelopment - try to avoid redevelopment clauses that allow a landlord to terminate the lease in order to redevelop or renovate the premises.
- Indemnity - be aware of indemnity clauses that indemnify the landlord against claims for loss or accidental damage by the landlord. Be sure to check your insurance policy to see if an indemnity clause on your commercial property could violate your policy.
- Handover dates - the handover date is the date the premises are turned over to the tenant to begin the installation of fit-outs, before the fixed commencement date of the lease. Avoid leases that allow a landlord to alter the handover date without compensation - as you could find yourself incurring substantial costs if you are delayed or caught unprepared for fit-out construction.
- Make good - a make good clause generally requires the tenant to leave the premises in good condition upon departure. This usually includes the removal of any fit-outs that were installed by the tenant during the term. If your premises come installed with fit-outs, negotiate to alter the "make good" clause to a general expectation to leave the premises in good condition and repair.
There are plenty of other clauses and terms that can be negotiated - from who is responsible for whose legal fees as well as any upkeep, repair and maintenance costs. Many businesses will find that they have much more success negotiating lease terms to help reduce their costs rather than trying to get a landlord to come down on price. A tenant broker service can help with the lease "legalese" - they'll help you get a better understanding of what your options are.
13 Really Hot Needs for Amenities in Leasing Commercial Property
A warehouse is a commercial building used for storage of goods while warehousing is the process of proper storage and handling of goods and cargo using scientific methods in the warehouse and making them available conveniently when needed. In today's scenario, warehousing is considered as one of the most important aspect of trade.
Need for warehousing
- Some commodities are produced in a particular season only. To ensure their off-season availability, warehousing is needed.
- Some products are produced throughout the year but their demand is seasonal. Warehousing is important in such cases.
- For the companies which opt for large scale production and bulk supply, warehouse is an unavoidable factor.
- Warehousing help companies ensure quick supply of goods in demand.
- Production of goods and their movement of goods are important for the companies for continuous production of goods.
- Warehousing is also important for price stabilization. For necessary goods, the Government stores them in the warehouses and control its supply in the market as per the price fluctuations.
- Another important need of warehousing is for bulk breaking. Consider a trade agent who imports goods from a country for a large number of buyers in his own country. He first takes the goods to his warehouse and break it into small parts for supply to the buyers.
- When it comes to cost saving, warehousing helps the traders with cross docking. All the goods are consolidated in the warehouse and then stuffed into containers as per their destination. This is especially beneficial for small traders who export low quantity of goods.
Characteristics of an ideal warehouse
- It should be conveniently located near highways, railway stations, air ports, sea ports etc. for loading and unloading of goods.
- Mechanical appliances should be there to lift, load and unload goods.
- It should be spacious enough.
- Food storage warehouses should have enough facilities to prevent food from perishing.
- Proper arrangement to save goods from sunlight, dust, rain, moisture and pests should be available.
- Sufficient parking space should be there to facilitate quick and easy loading and unloading of goods.
- Security arrangements should be strict and round the clock.
- Modern and tested firefighting equipment should be installed in the premises.
Real Estate Agents - How Do You List Commercial Property the Right Way?
Land options are becoming an increasingly popular way for landowners and developers to work together. Nevertheless, the process is becoming more complicated, and there are potential risks for each party. So whether you are a landowner or a developer, you should seek expert legal advice before committing to an agreement.
Option Over Land: How Does It Work?
A land option is where a landowner gives a developer the option of buying their land, on the basis that the developer secures planning permission for the site. In return, the landowner will get an above market offer.
There are two different types of option. Firstly, a 'Put Option' sees a landowner give a developer a 'grant of an option over land' which is then registered with HM Land Registry. This option will be held in place for an agreed amount of time, although this period cannot exceed twenty-one years. The developer will then promote the site for development via the necessary channels. If planning permission is granted, and the developer wants to go ahead with the purchase, the landowner must then sell at the agreed price.
Nevertheless, if the option is validly exercised and the terms laid out in the conditional contract are adhered to, then you are legally compelled to sell your land.
Seek Expert Advice.
Land options are becoming increasingly complex, which is why it is essential to seek expert advice before you sign a contract. You need to be fully aware of how the process works, the terms and conditions, and the requirements of both parties. If you fail to do so, then it may prove costly.
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