Commercial real estate at is any property that is not used as a residential place but for commercial purposes, for example market stalls, malls, offices and other businesses. Read more about commercial real estate at https://3cre.com/commercial-real-estate-dayton-ohio/ to find out more. Business people lease business space from commercial real estate instead of buying the building for flexibility. If a real estate makes profit or is used for investment it is categorized as commercial real estate. People are heading to commercial real estate either as brokers, buyers or business people who want to lease business space.
REQUIREMENTS OF BECOMING A COMMERCIAL REAL ESTATE BROKER
A real estate broker is a middleman between buyers, sellers and business men with the intention of leasing business space. To become a broker a degree is not needed but in most countries a high school diploma is a requirement. A broker’s license is a must have and a licensor test is required to be undertaken. The potential broker should have at least one to three years of real estate sales experience and posses a sales license. The requirements of the licensing tests may be skipped if the person has a valid and recognized real estate degree. The broker’s license and the sales license require renewal every two, three to four years. More tests and training are needed for every renewal. Estate brokers earn an average salary of $56,860. Potential estate brokers should posses great skills in communication and problem solving. They should also be very persuasive, self-motivated and should be able to work alone for a long time.
WHAT TO UNDERSTAND BEFORE LEASING BUSINESS SPACE
Signing a lease on long time basis is expensive. The industry has little regulation and standardization which creates inefficiency.
If rent is paid on a basis of price per square foot, the building may be measured in the exterior, yet there is some space between the interior and the exterior that will not be used. This makes clients pay more that they should.
There is money given to tenants in the event of signing a long term lease. This money is meant to improve the space and it is known as Tenant Improvement (TI). This money is indirectly paid by the tenants. Landlord builds up these expenses to rent, making it more that it actually should be.
The landlords stealthily throw in fee meant for property management into the Common Area Maintenance (CAM). CAM is an expense that is paid in the event of signing a long-term lease. These are expenses that are not supposed to be met by the tenant but landlords make it happen, adding to the reasons why tenants should opt for short term leases, for example a monthly contract.
THINGS TO DO BEFORE BUILDING A COMMERCIAL REAL ESTATE
There is need to understand tax rates, environmental concerns and land inventory in order to determine suitability of real estates in the location. Accountant consultation services are also necessary for an efficient business plan in terms of funds needed. An operational efficiency expert should be the one to design the layout of the estate. Potential landlords should also get builders with punctuality, experience and knowledge of commercial real estates and honesty. This will ensure that the estate meets all the quality standards required by the state.
Before building or leasing a commercial real estate, tenants and landlords should ensure that they have enough finances to cater for all expenses, including those that come up unexpectedly. They should also exercise wisdom in planning on the projects and making decisions on whether to go for long-term and short-term leases. They should evaluate potential market and make appropriate decisions.