Tips on Leasing Commercial Real Estate

For some small business owners and entrepreneurs leasing commercial real estate can be a confusing process. These types of investments involve quite a bit of money and if you make the wrong move, it could result in a big loss for the owner. Today, most of the new commercial real estate begins by leasing office space. This is a less expensive alternative to buying a new space. Here are some tips on how to lease this type of real estate. The first thing that you should do is start to develop a proper network of experienced contractors, real estate brokers, and investors are necessary in order to find the best deal. You should also take the help of local professionals. They can provide you with useful contacts and leads. Read city and local newspapers so you can understand the different aspects of the real estate market. Having knowledge of the current market statistics will help you have feasible and profitable lease rent.

Now you need to find a tenant that is reliable. You should look for those that have a good business reputation. If some damages occur to the property, the owner will have to get it fixed. This means that they may have to pay quite a bit to make sure that the property remains in good condition. If you have a tenant that breaks contracts, mishandles the property, or pays late then this can become problematic. It is advisable for the owner to be a part of the business and for them to get involved with the building and the clients. If the owner becomes causal about the building and the clients then the profits and investment could collapse.

In commercial real estate you, the owner, should keep in mind the fees money. This can include the fees that your accountant charges, engineer fees, attorney fees, and brokerage commission, which all can be negotiable. You should never hesitate to ask for a lower price. Most of them will reduce their fees so they can guarantee your ongoing business. Large amounts of money are involved in commercial real estate transactions so deals can be negotiated easily. Make sure that you read the conditions and terms of the lease agreement carefully and if you have any doubts make sure that you immediately clear them up with the tenant and the real estate agent. In the rental property there is normally a change in the amount of rent paid monthly because it rare to have a fixed rent in leases that are long term. The amount of increase is generally based on the percentage increase in the Consumer Price Index.

How Buyer’s and Seller’s Markets Impact Homes for Sale

Nothing is as fickle as real estate. Housing prices may rise or fall for any number of reasons. Although they can make investing in your own property a bit of a risk, with a little bit of knowledge the informed shopper can easily make the best decision possible when looking at homes for sale.

Buyer’s Market

Simply put, a buyer’s market is a result of the economic principle of supply and demand. In this case, there are more properties in supply (i.e. for sale) than there is a demand for them, meaning that those looking to invest in real estate have a lot of options to choose from. Supply and demand fluctuate depending on how many new customers enter an area and how many homeowners in the region have decided to stay in their properties.

In these circumstances, there are plentiful homes for sale, which favors those interested in investing in residential property. The geographic region and price ranges are favorable and the cost to purchase is relatively low. If housing in an area tends to take more than six months to sell, then it is considered a buyer’s market. You can easily find how many days a property has been listed on various real estate sites.

Seller’s Market

In a seller’s market, it is harder to find homes for sale. The supply is low in comparison to the demand to purchase property. Prices are typically a little higher and houses don’t tend to stay listed for as long a period of time.

When this occurs, there are a limited number of options. Buyers will have less opportunity to negotiate-because sellers can entertain other offers-and as a result, will pay more than they would in a buyer’s market. Sellers can increase their prices and, as long as the homes appraise for the asking price, receive more than they otherwise could.

What Stimulates the Change

As with everything, housing properties will fluctuate between shortage and surplus. While there is no clear determination on how long the current stage will last, there are several factors that can impact the supply and demand of homes for sale in your area. Things like interest rates, consumer confidence, and economic conditions have a high impact. A growing regional economy coupled with low-interest rates and high confidence can lead more people to buy houses.

However, just because more people are buying doesn’t mean there are also more people selling. Supply tends to lag behind demand in real estate. While you may think that low rates and good economic growth would spur a buyer’s market, it is actually more favorable to sellers. That is because there are more parties competing for a limited number of houses.

When the economy slows down, or interest rates increase, demand diminishes. When that happens, homes for sale will stay listed for longer periods of time. With more real estate options available, qualified purchasers have better chances of finding good deals on housing in their areas. Buyers can often negotiate with the seller on a much lower price than what the seller had originally intended.

It is Not Too Hard to Buy Gifts Such As Designer Sunglasses for Close Friends and Relatives

I found a gift that is special for me to give to relatives and close friends. They are designer sunglasses I buy online at a specific website. They are nice gifts, and still affordable. What makes them special is the backstory of what I go through to get them for a person who is special to me. As you know, sunglasses are a personal choice item. There are so many variables of what it is people like and do not like. You can buy an expensive pair of sunglasses for someone, but that does not mean they are going to like them. I take a unique approach on that.

Gift giving is all about knowing the person receiving the gift. The gift becomes special and memorable when you take the time to really know what it is the person would like in any class of gift you buy. Let’s say for example that I could afford to buy a brand new car for anyone on my gift list. It sounds like any car would be gladly received, but cars are another personal item. There are lots of brands, models, trim styles, colors and features that are available. Not everyone even likes cars. Read the rest of this entry »

How To Go About Getting A Commercial Mortgage

A commercial mortgage can be defined as a loan that is secured on a property that is not your residence. You basically get a loan to buy a commercial property that you want to let. All premises can be very different and this means that the loans have to be assessed individually and priced in relation to the individual risks they come with. The commercial mortgages take up from where the business loans finish. There are so many lenders willing to offer the mortgages, but you also need to be careful with the process to get the best deal.


One of the best ways to secure your mortgage is to use a good mortgage broker company to find you the best deals. Remember that the lenders will most definitely take the property that you are interested in buying as security and for that reason you need to have the best terms for the loan as possible. They will give you up to 70% of the purchase price and you will need to make a cash deposit for the remainder or offer additional security which could be another property in case you do not have the needed cash. Likewise, you could also use shares and insurance policies that you have as assets for the deposit.


When going for the commercial mortgages, it is important to remember that the rates are not pre-determined as it is usually the case with personal loans. When you apply for the loan, the lending manager takes a very careful look at the risk levels and matches it with a risk profile for approval or refusal. A refusal comes in if your loan falls outside the used risk profile. You can borrow up to 70 to 75% for owner occupied property, but for investment, then the rental income it generates is what will determine the amount you can borrow but most times it does not exceed 65%. In a case where you are buying a business that includes things such as goodwill, then the amount you can borrow goes further downwards.


To cover work even in cases where you refuse an offer from a lender, arrangement fees usually apply. A commitment fee applies as part of the arrangement fee and remains non-refundable. The arrangement fees can be up to 2% of the amount. When applying for the loan, you will also need to pay valuation fees because a valuer is needed to visit and value the property and present the report to the lender. Residential valuations are cheaper compared to commercial valuations but they have no fixed amount. There is an also legal fee and in most cases you will be required to pay for your representation and that of the lender.

Getting a commercial mortgage can be a tedious process, but a specialist commercial broker can help you make it smoother. This is because such a broker has market knowledge and contacts, hence is better placed to find you the best deals. He will represent you before the lenders and close deals on your behalf at a reasonable fee.