As a real estate agent it pays to have a good approach to listing commercial property. A system to the process is a good idea. Not only will a system help you ask the right questions, but it will show your professionalism to the property owners.
When you are listing in a competitive market place it is highly likely that another agent or two will be inspecting the same property later in the same day. It thereby follows that the agent that is the most professional in the inspection process is highly placed to win the listing.
When times are busy you could be inspecting 2 or 3 properties a day for the purpose of listing. So a property inspection process is valuable to you in your listing conversions. I split the process into 2 levels as below.
My inspection process of a commercial, industrial, or retail property could be similar to the following:
- Check out the property title ownership detail before you get to the property
- See if any encumbrances or rights of way impact the property and if so how
- Get a copy of the local survey plan for the street and area
- See what the zoning and building codes do for the property
- See if there are any orders or notices on the property at the moment in the local building authority office
- Research the property sale and rental history over the last few years
- Review the tenant mix and lease profile from known leases
- Get details of recent comparable sales and rentals in the area
- Look for comparable properties in the same area that may be for sale or lease now and that could impact the marketing of the subject property
- What vacancy factors exist in the property currently?
- Check out the boundaries for the property and proximity to neighbours
- Walk the local street to understand visibility and access to the site
- Look at the signage of the property for identity and impact
- Review the building improvements for suitability and function. Are they what the market wants today?
- Get a copy of the tenancy schedule for review
- Ask about building income and expenditure performance (especially if the property is for future sale)
- Walk through the property with the owner or landlord whilst asking questions about current property performance
- Review lettable space and common areas for practicality and operation of the property investment
- Look for any vacancies and see if they are dragging down the function of the other tenants nearby
- Ask about anchor tenants if they apply in the property and get copy of the leases to see the terms of occupancy.
- Take plenty of photos that can help you later with notes and review analysis
When you inspect a commercial property for the first time it pays to have all the facts researched before you get to the property. In the actual inspection get more details from the property owner on current issues and concerns. As a general rule do not price a property at the inspection. It is far better to take the inspection information away for greater analysis. You can then formally present your findings to the owner at a later meeting. » Read more: Systems to Follow When Inspecting Commercial Investment Property