Have you ever come across a roadblock, turned to take an alternative route and found yourself up against another obstacle?
During Saskatoon’s construction season (basically anytime not designated Winter), it can be frustrating trying to find a route without some hurdle.
Likewise, commercial real estate buyers and sellers can potentially encounter endless roadblocks during the course of a transaction.
Unlike driving, though, you can anticipate these snags and potentially veer around them.
My short commute route takes me past two nationally branded gas stations.
Both locations seem to be compatible in exposure and traffic count with front elevations that showcase up-to-date versions of their respective brands.
Why then is one site far more successful than the other?
This may sound counterintuitive as we navigate the economic impact of a pandemic.
But I’ve recently reported that our
Saskatoon industrial vacancy rate actually dropped in 3Q20 demonstrating the economic resilience of this asset class.
Two industrial properties I recently brought to the market sold within one week.
There is one thing universal to commercial real estate transactions when it comes to investment buyers and sellers.
Buyers want the highest cap rate they can find; and sellers want to challenge the market with the lowest cap rate it will withstand.
Often the value of the property lies somewhere in between.
If in a negotiation you hear the Seller say: “I’ve already been offered $X sum of money,” and that amount seems somewhat unrealistic, ask if it the offer was in writing.
It’s interesting how many times the response is, “no, it was not in writing.”
After a hard day of knocking on doors and grinding out deals, how do commercial real estate agents relax?
By sitting down and watching films about our industry like the nerds we are. Or is it just me?
Here are a few I recommend checking out…
I have a pretty wide range of expertise as a commercial real estate professional.
I’m not an engineer, electrician, or city planner, but I need to understand some working knowledge in all these areas (and others) to properly advise my clients.
An issue that comes up pretty regularly in our world is dealing with easements and encroachments on properties.
Fair is a pretty relative term in the commercial real estate universe.
It depends entirely on which side of the transaction you are as to what your perception of fair may be.
In regard to commercial leasing, does fair apply to the landlord or tenant?
If you’ve purchased a commercial or residential condo, you would have encountered an estoppel certificate.
There are many reasons for obtaining a condominium estoppel. They provide insight into the project reserve fund, illustrate if there are any unpaid contributions or arrears and determine if its bylaws and policies are in good standing.
Estoppels are just one of
many due diligence items I encourage buyers to ask for.
The information I’m discussing here is applicable only to single and multi-tenant investments (excluding multi-family rentals).
Let’s look at the importance of obtaining estoppel certificate(s) during your investigation of an investment property.
This question that was asked of me yesterday triggered the notion that there was a need to write about it.
Each of these three valuation processes have different end goals. It’s important to understand which value can be relied upon to represent fair market value.
a real estate broker or accredited appraiser is gathering information to
determine a value, neither the insurance nor assessed tax values are taken into
what everyone wants to hear. If you’re hoping for a high value, you’re more
likely to quote the number stated on your insurance policy. Let me explain.