When it comes to listing a commercial property for sale or lease, you really do need to thoroughly inspect the property so the improvements and features can be correctly documented in preparation for marketing to the buyers or tenants.There are many ways to look at a property that is to be taken to the market for sale or lease, but as the agent you are to find out all the details that impact the legal title, promotion, and improvements in the asset. Some of main things to question and explore are:
The legal title for the property and the ownership structure should always be checked. Never rely solely on the representations of the client or their representatives.
Identify and inspect any other properties in the local area that are of similar type and on the market at the moment. These properties can have significant impact on your marketing campaign.
The leases for the tenants in the property should be sighted and read. Check all the terms and conditions in the leases to ensure that the tenants are using the property in accordance with the leases.
Ask about vacancy factors and leases that are soon to expire. As part of that you can look at the leases in the tenancy mix.
Any notices or orders that exist and that can have impact on the sale or lease of the premises. Ask about anything of this type that will apply to the property directly or indirectly.
The boundaries of the property and any encroachments should be checked. This may involve getting copies of plans and surveys. As part of this look for any rights of way or easements that have impact on property usage.
The history of the property and the tenancy mix will be of interest to buyers and tenants. Ask about the way that the property has been used over the last few years.
Existing tenant profiles and leases that relate to all tenants in occupancy should be checked. This will involve looking at all lease documents and associated agreements. Do not rely on the tenancy schedule for this process as they are usually wrong or out of date.
Risk related matters should be questioned to ensure that the property poses no threats to occupants, neighbours, or customers.
Energy costs are of increasing concern to many tenants and buyers of property today. You will need to know just what the energy systems and consumptions are in the property and that they are in balance or better than other properties of similar type in the local area.
Heritage factors can be significant in the future of the property. The heritage listed property brings with it matters of compliance, rules and regulations, and greater costs of maintenance. Some tenants and property buyers will avoid heritage listed properties, so make sure you ask the right questions.
Environmental factors will always be of concern to tenants or buyers of property. Ask about anything that can have an environmental impact directly or indirectly on the property function. When it comes to industrial property, the topic of the environment is very common in lease negotiation and property usage.
Outgoings within the property will have direct impact on the bottom line and most particularly the net income. Get copies of the income and expenditure budget for the property in the current financial year together with the actuals to year to date. Question anything that looks like a manipulated financial result.
When it comes to inspecting a property today, your diligence in the process will allow the property to be well listed in preparation for a productive marketing campaign. Gathering the correct detail and asking the right questions at the early stages of listing will assist you greatly in converting the listing to a successful transaction.