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?
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.
Commercial Property for Lease
Choosing to rent or lease warehouse space can be a very beneficial move for new or small businesses. When you rent warehouse space, you will save money and free up valuable office space in your facility. The extra space you have in your office or building will give your company greater potential for growth and flexibility.
The first thing you need to do when researching a warehouse facility for lease is identify the aspects of a storage facility that you require. Think about the items you will be storing in the warehouse and whether you need electricity, temperature control or running water. Will you need to conduct business from the warehouse? Some warehouse space for rent can only be used for storage. If you need to have employees working in the warehouse, you'll want to make sure the space has restrooms, proper ventilation and a break room. Some warehouses also have office space that you can use, as well as showers and couches for longer stays.
Be certain you fully understand your warehouse lease before you sign it. Ask questions of the landlord and make sure there aren't any hidden fees and expenses. You may want to have your attorney look over the warehouse agreement so you can have a better understanding of your rights as a warehouse tenant.
Tips For Renting Commercial Property
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.
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