How Do you Select the Commercial Property or Warehouse To Rent in Pretoria East?
A real estate agent listing a commercial property in Pretoria East should undertake a detailed property inspection before they give any indication of price or rent to a landlord or property owner. In only this way can they really know what the property is all about; that is what positive and negative aspects the property can create as an investment of Factory Space For Rent Near Me .
Every property is different and for that simple reason it pays to have some form of checklist to run through when as an agent you are listing the commercial property in Pretoria East . The focus of the inspection will change depending on whether the property is to be for sale or for lease but here are some of the key issues that you would want to know about in listing of the commercial property for rent.
Interesting Facts About Warehouse and Commercial Property To Rent in Pretoria East :
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.
The Benefits of Renting Warehouse Space For Your Business
Though it is certainly more common, and in many cases easier, to find deals with the single family houses, there are times when the opportunity presents itself to acquire a commercial property. And if you are a person who desires to pursue this venture, there are a few things you want to keep in mind when doing this. Following these simple steps can help speed up the process of getting some of these big deals in the pick line.
First, FFN offers a Commercial Property Boot Camp. This is a must if you want to pursue this arena of the real estate business. This course will teach you all the ins and outs of going through these business transactions. See the website if you want to know when the next one will be offered.
You will also want to keep your eyes open when you're riding around town, especially for fiz-bow signs (FSBO - "for sale by owner). If you see fiz-bow signs on big tracks of vacant land or any type of property, you will certainly want to call those numbers. When you are dealing with fiz-bow in the commercial property world, there is usually a reason they are trying to sell these properties themselves. And sometimes this can lead to some really good deals.
Where is Factory Space For Rent Near Me in Pretoria East?
Leasing is a major part of the commercial real estate market activity at the moment and for the immediate 24 months. This is due to the opportunity of lower rental and better premises for existing businesses. Some businesses are handling the economic pressures in this market just fine. These businesses are the ones that you want to be closely working with as they seek to relocate to better premises.
The high value you bring to landlords in this market is your ability to tap into a significant data base resource of tenants. Every day you should be tapping into your database and adding more businesses to it. Those agents that are doing this at the moment are the ones that are earning the good commissions.
Tapping into Tenants Needs
When working with or for prospective tenants to find them new space to occupy, it is useful to compare buildings in a logical and material way. Some agents choose to specialise in leasing commercial space and comparing buildings is undertaken as a standard part of the professional services provided.
It is useful if you create a checklist for the process of property comparison. An excel spreadsheet is ideal for the purpose. The quality of your checklist will test and support your skill in judging property functionality for the tenant in both tangible and intangible ways. Ordinary agents and brokers do this in only a superficial way and with little attention to the process or to detail.
Your Point of Property Difference?
So this process can be a distinct part of your commercial property leasing services and if done in conjunction with the tenant, will show your complete understanding of what the tenant needs. Compiled in a correct way it can build tenant confidence in your services and strengthen future ties or repeat business. So let's now look at what you can put in your 'Property Comparison Matrix'.
The comparisons are to be made property to property. The data is entered into the columns of a spreadsheet. These headings below should be the columns of your spreadsheet.
- Rent: this is the rent required to be paid in the first year of the lease. How does it compare to the market and other properties around?
- Rent review profile: this is the escalation profile of rental over the term of the lease. Rent reviews are to be done in different ways and you need to know how they may impact the landlord or the tenant (it does depend on who you are acting for as to your interpretation)
- Incentives available: this is the type of incentive that can be given in the lease deal and its relevance to the tenant at the start of the lease. Is it in the form of a rent reduction, rent free period, fitout fund, or provided established existing fitout? There are advantages and disadvantages to be assessed in each case.
- Term of lease: the term of the lease that the tenant can achieve in the property is important and will be a fundamental factor for them to consider. How flexible is the landlord in giving the tenant a longer occupancy if required?
- Option available: some tenants need an option to occupy the space for an extended time. If this can be provided by the landlord it will be a selling point for the new lease. Care must be exercised in how the rent will be set in the new lease term of the option.
- Lease deposit: this is the amount of deposit required by the landlord for the premises. The amount of money is usually one month's rent paid in advance.
- Rental guarantee: this is the type of guarantee required by the landlord as part of lease acceptance. It is common for guarantees to be either cash, directors or personal guarantees or bank guarantees. The amount sought by the landlord will vary.
- Moving or relocation costs: every property will present differences in moving costs. This can be due to the distances involved in the relocation and or the physical attributes of the property to which they locate.
- Floor coverings, wall treatments, and window treatments: all of these are both cosmetic and functional for the new occupancy. The quality of these should be a commercial standard. Some landlords may choose to take the cheaper option with the cheaper products which will deteriorate quickly during the term of the lease. Commercial grade materials are desirable at all times. This should also be enforced on the tenant when they consider their individual fit out construction.
- Existing fitout: It could be that the potential new property that the tenant is considering has some established fitout which is useable in the new occupation. This will be a cost advantage for the tenant in minimising its costs of new fitout.
- Storage: with today's modern business, it is a great advantage to have storage capabilities onsite for the use of tenants. Typically these areas can be in car park locations, plant rooms, and service areas that are not frequented by tenants or members of the public. Obviously the areas need to be secured and in doing so a rental will be charged to the tenants for the use of the space.
- Signage: many tenants require a business presence that is identified by exterior signs. This can be signs on the exterior of the building, pylon signs, and directory board signage. In most cases, rental is charged for signage. It is the importance of the signage and the buildings ability to provide it that will be relevant to the tenant.
- Car parking: the availability of onsite parking is important to many tenants today for both staff and or customers. Car parking should be separately charged to the tenant given the number of spaces that they require. The availability of car parking and the number of car parks available will influence the tenant in their future occupancy decision.
- Expansion space: many tenants need to know that expansion space can be achieved in the premises as time proceeds. This should be looked at and assessed in case it is of interest to the tenant.
- History of the building: some tenants and like to know that they are located in buildings that have an established presence and performance. Any history of the building will be of interest to the tenant.
- Quality of ownership: well established landlords with a history of quality building performance will influence a tenant in their occupancy decision. Gather whatever information you can regards the landlord's track record in building performance. It will also be interesting for the tenant to know if the landlord regards the building as a long term holding or short term investment.
- Quality of maintenance: it is easy to see if the building is well maintained from its general appearance. Experienced landlords will spend money on cosmetic upgrades regularly so that the building gives a first class appearance at all times. This then supports the rental in any new lease and the ability to escalate rental over time. Help the tenant and the landlord understand this critical component of ongoing occupation.
Commercial Property: Is There Any Land Options?
If you ask any banker, he'll tell you that anything over 4 units is considered a commercial property. If you ask any municipality regarding their trash pick up, you'll get the same answer, ditto with insurance companies but are apartments really commercial properties?
When you think of commercial property, do you think of tall skyscrapers, office buildings and warehouses...and possible large apartment complexes?
Well, apartments over 4 units are commercial properties but there is one big difference between apartments and offices. One space is occupied by residents and the other spaces are occupied by businesses.
That's a big difference! Did you know the 3 out of 4 businesses go out of business after the first year? Ninety percent are out of business by year five! If your renting to businesses, chances are, your turnover rate is going to be higher than a residential property and you should know that tenant turnover is your biggest expense in any multi-unit property.
There is one other thing you should consider, when you're attracting a commercial tenant for your property, you usually agree to do a "build-out" which means you change the space to make it conform to the business. This could cost you thousands of dollars.
With an apartment unit, the "make ready" usually consist of paint and carpet. If more is needed, it's usually paid for from the previous tenants security deposit.
Yes, apartments over four units are considered commercial properties but as you can see, they are in a class by themselves when you compare risk versus reward.