5 Steps to a Powerful Commercial Real Estate Deal

 In All, Business, Commercial Real Estate

Most real estate professionals will agree that commercial real estate investing is more lucrative than residential investing. Commercial real estate has a bigger payoff and more cash flow for the property owners. But whether you are on the buying end or the selling end, closing a powerful commercial real estate deal can be tricky. So how do you recognize a great deal and how do you close it?

  1. Make a plan: More than just the goal to find a property and purchase it or sell your property, a plan is specific. For the buyer, know what type of property you are looking for, what is it’s use – retail, office space, apartments. How much rehab are you willing to take on?  Are you willing to fill the space yourself or do you want a space that already has tenants? What are your timing requirements? For the buyer, when do you want to get in? For the seller, how soon can you get out or how quickly do you want the new buyer to take over? For the seller, know what you need to get out of the property and make a plan to market it.
  2. Know what a good deal looks like: Decide what your idea of a successful deal looks like. If you don’t want to look for your own tenants, how many tenants are already committed? What price brings you the best ROI or profit? Will any damage or repairs needed eat into your profit? Then have an exit strategy.  Know when it’s time to walk away if it’s not going well.
  3. Know your neighborhood: Location, location, location – we all know that is the key to a great deal. If you are buying, check the neighborhood of a potential investment. Go to open houses, talk to other business owners in the area. Check out how many other vacant or for sale properties are near your property. This could give you a good idea of the market in that area. For sellers, know what’s going on in the neighborhood and market the positives.
  4. Work the middle man: The middle man in this case are the third-party agencies that can delay a transaction. Government agencies, lawyers, closing companies can all delay closing a deal. These agencies have no stake in the deal so they have no urgency to move it along. As the real estate agent, you are in a position to foresee this type of delay and can circumvent it by some well-timed communication. Develop relationships with vendors so you are in a position to expedite transactions that seem to be dragging.
  5. Protect your investment: Whether you are the one selling or the one buying putting a warranty in place can be key to closing your deal. If you own the property or are the agent representing the owner you want your property to stand out from the rest. Give your commercial real estate property a value-added product, something unique that competitors do not offer. Office warranties, the newest trend in commercial real estate, offer this unique value-add. An office warranty is a product that covers the most time-consuming, budget-busting system repairs and provides regular preventive maintenance. Similar to a home warranty in residential real estate, you have a value-added service that elevates your listing, separating it from the rest of the market.

If you are the buyer or the buyer’s representative, you will want your new property protected from a catastrophic systems failure particularly as you are trying to fill the space with tenants or set up a business. Try negotiating a warranty into your deal or put one in place once the purchase is complete. It will protect you and be a great incentive to potential renters, increasing tenant satisfaction and lease renewals.


OfficeGuardian has developed the first all-inclusive commercial office warranty of its kind. In the Phoenix, Arizona area, commercial real estate agents can showcase a property with the protection of an office warranty from OfficeGuardian.  Properties will rent faster than the ones right next door because tenants will move in knowing that they don’t have to worry about office systems failing while they are trying to get their business up and running. The peace of mind that office warranty coverage offers prospective tenants is invaluable. Properties with a commercial office warranty rent faster and yield a higher annual lease rate.  In fact, an office warranty can even pay for itself, since a small increase in the annual lease rate will completely cover the cost of the warranty.

About OfficeGuardian

OfficeGuardian, the pioneer of the office warranty industry, offers a fixed-cost, worry-free response team to commercial tenants in the event that a major office system or appliance breaks down due to normal wear and tear.

For more information, visit www.officewarranty.com





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