Buying or Leasing a Commercial Property
When you're looking for a commercial property to buy, lease, or invest, your best resource for information is your CENTURY 21 Commercial Professional. He or she can address opportunities in your area, and can answer your questions - from location selection to appraisals to property management. Your CENTURY 21 Commercial Professional can provide information for you to make an informed decision about investing, as well as track market trends and opportunities.
During your search, there are many different kinds of properties to consider. These include:
- Farms and Ranches
- Motels and Hotels
- Mixed Use
- Special Purpose
Office buildings or office space can be as simple as a residential home in a business district or as complex as a fifty story office tower. Often occupied by multiple users or a single end user or tenant, they are either Low Rise (less than 7 stories), Mid Rise (7-25 stories) or High Rise (anything above 25 stories).
Such types of properties can be usually classified in three different ways:
- Class A building generally means the property is high quality, new or in new condition, modern design with excellent finishes and with many amenities. They usually command the highest lease rates in the market.
- A Class B office is in good condition, and highly leasable. They have standard finishes and fewer amenities available although they usually command a lower rate than a Class A building.
- A Class C property generally is "dated" or contain some functional obsolescence like poor layout or not able to be retrofitted for elevator service. These properties are usually found in less desirable locations.
Retail properties generally range from individual shops to large neighborhood retail centers. Retail centers drive traffic and may offer several cross-sell opportunities by including various non-competing businesses, sometimes complemented by an anchor store. Larger centers often include "pad sites" typically occupied by banks and fast-food operations. Retail properties are typically non-owner occupied and may be utilized for income, tax relief, and appreciation. You should consult with your tax/financial advisor about specific tax and financial advice.
Small strip centers generally range from five to ten tenants and cover 6,000 to 15,000 sq. ft. Many large grocery chains initiate these as brand anchor stores with 10-20 smaller shop-space tenants. CENTURY 21 Commercial Professionals have resources available to help you evaluate the property for length of existing leases, financial strength of the tenants, age, and condition of the property and risk exposure. All these factors should be considered in matching the best commercial properties with your own investment objectives.
As residential income properties, apartments are designed to be leased or sold to multiple tenants for habitation. These commercial sites range from a small condominium to a large apartment complexes. Properties are typically non-owner occupied and may offer the opportunity to be a source of cash flow, tax benefits, appreciation, and capital accumulation.
Farms and Ranches
Farm and ranch properties have agricultural acreage used primarily for food-product production (including cattle and dairy, crops, hay, alfalfa, etc). Farm and ranch properties present a wide variety of options-whether you are looking to buy, lease, or invest in an agricultural enterprise. Agricultural acreage primarily produces food products, with hunting and/or recreational activities perhaps offering f significant value to some ranches. Related "agri-business" properties encompass a broad industry that spans food processing, storing, and marketing. CENTURY 21 Commercial Professionals can provide you with information to help you understand production acreage and the investment potential of agri-business.
Farms and ranches are generally classified by size or income. For example, large properties may have more than 10,000 acres whereas smaller ones may be suitable for a part-time income or a residence with an additional source of income. Whether you are looking to assume existing production or to start up a new agri-business, CENTURY 21 Commercial Professionals can provide assistance to help locate the property that aligns with your resources and location requirements.
Industrial Properties include manufacturing, warehousing and distribution centers.
Industrial buildings are often owner or user-occupied, and multi-tenant industrial parks include a collection of single- or multi-tenant buildings. These range from manufacturing facilities, warehouses, and distribution centers to high-tech office sites.
Industrial properties can be complex with regard to the physical characteristics of the buildings and the operational requirements of the intended business. CENTURY 21 Commercial Professionals can provide information to help you assess the property as it relates to your needs. CENTURY 21 Commercial Professionals can help you facilitate the search, and help conduct the analysis and negotiation of the property. They also have access to other local resources that can assist you with evaluating the electrical power requirements, ceiling and roof heights, dock versus grade loading, truck turnaround, lay down yard requirements, environmental issues, fiber optic availability, rail sidings and more. In providing all of this information, the CENTURY 21 Commercial Professional can help you define and locate the property that aligns more closely with your resources, expectations, and location requirements.