Before you start looking for commercial space to buy or lease, you should look for a commercial REALTOR® to help make the process easier. Of all the time-saving elements that commercial REALTORS® provide for clients like you, understanding and deciphering the paperwork involved in transactions like the purchase of commercial space is usually at the top of the list.
In effect, with a commercial REALTOR® you get a business partner whose main goal is to help you find the right commercial space for you and your business, at the best possible price.
Buying Commercial Space
Before you start looking for commercial space to buy, you should look for a commercial REALTOR® to help make the process easier. Of all the time-saving elements that commercial REALTORS® provide for clients like you, understanding and deciphering the paperwork involved in transactions like the purchase of commercial space is usually at the top of the list.
In effect, with a commercial REALTOR® you get a business partner whose main goal is to help you find the right commercial space for you and your business, at the best possible price.
Your Buying Checklist
Your commercial REALTOR® can help you at each stage of the process, from finding your commercial space to finalizing the transaction. Some key steps are outlined below to help you as you start working with your commercial REALTOR®.
1. Property Search
- Consider location: You may want to consider locations that are close to your customers, your home, workers, vendors or suppliers.
- Consider the investment: Understanding market value will help you know when and where to buy your commercial property.
- Find a space that suits your business needs: Consider the square footage, facilities, growth potential, street visibility, parking, security and so on.
- Building condition: During initial viewings make note of any visible damage or wear and be sure to follow up with a professional inspection.
2. Zoning & fees
- Zoning: Check with your municipal affairs office or municipal planning department for zoning regulations and land use. Find out how to apply for a zoning bylaw amendment if needed.
- Insurance: Look into insurance coverage required for your new business space.
- Taxes: Take into account any provincial and municipal taxes as part of your overall cost.
3. Closing the sale
- Consult a legal professional: A real estate lawyer will do a title search, review the mortgage agreement and finalize all paperwork.
- Renovations and repairs: Consider renovation costs to modify a building for your business needs and negotiate the cost of repairs in the sale.
- Making an offer: When you’re ready, your commercial REALTOR® will help you negotiate and draft an offer. Be prepared for a multiple offer situation
Selling Commercial Space
The selling process generally begins with determining a reasonable asking price. A commercial REALTOR® can give you up-to-date information on what is happening in the marketplace which is a key factor in getting your property sold at the best price, quickly and with minimum hassle.
From there, a commercial REALTOR® can help you with marketing, negotiating and finally, closing. In effect, they’re your business partner whose main goal is to help you get the best possible price for your space.
Your Selling Checklist
Your commercial REALTOR® can help you at each stage of the process from listing your space to finalizing the transaction. Some key steps are outlined below to help you as you start working with your REALTOR®.
1. Listing your property
- Set a price: Understand the market value of your commercial property.
- Make necessary repairs: Get your property market ready by painting, cleaning, making repairs and landscaping if necessary.
- Market your property: Your commercial REALTOR® will post professional commercial listing and signage when you’re ready to put your property on the market and coordinate showings with prospective buyers.
2. Negotiating Offers
- Consult a legal professional: A real estate lawyer will review utility and property tax adjustments, and consult on mortgage prepayment or discharge fees and more.
- Review the terms: Each offer will come with certain terms, most of which you can negotiate through your commercial REALTOR®. Consider what inclusions and exclusions will be a part of the negotiation of the sale.
- Negotiating and counter offers: You may have multiple offers from different buyers to entertain.
3. Closing the sale
- Accepting an offer: This will be contingent on the buyers credit, approval of mortgage, terms agreement and confirmation of down payment.
- Pay closing costs: Be prepared for investment expenses such as capital gains taxes and other closing costs. Your lawyer will finalize all paperwork related to closing.
Leasing Commercial Space
Most landlords and building owners have professional representation looking out for their best interests. When it comes to leasing space for your business, shouldn’t you have the same?
A commercial REALTOR® has the experience and market knowledge to find the right business space that will fit your plans and financial requirements. In effect, giving you a partner whose main goal is to help you find the right space for you and your business, at the best possible price.
Your Leasing Checklist
Your commercial REALTOR® can help you at each stage of the process from finding your commercial space to finalizing the transaction. Some key steps are outlined below to help you as you start working with your commercial REALTOR®.
1. Property Search
- Consider location: You may want to consider locations that are close to your customers, your home, workers, vendors or suppliers.
- Find a space that suits your business needs: Consider the square footage, facilities, growth potential, street visibility, parking, security and so on.
- Building condition: During initial viewings make note of any visible damage or wear and you may want to follow up with a professional inspection.
2. Zoning & Fees
- Zoning: Check with your municipal affairs office or municipal planning department for zoning regulations and land use.
- Expansion or subletting: Check with the landlord to determine whether expansion if your business grows or subletting if you have extra space is permitted.
- Leasing fees: Commercial lease rates are usually based on the size of the space or the square footage. Your landlord may add operating costs to this base lease rate.
- Insurance: Determine what is covered by your landlord’s insurance and what your business is liable for.
- Taxes: Verify which parties are responsible for property taxes or any municipal taxes.
3. Lease Agreement
- Consult a legal professional: Ensure your lawyer reviews your lease agreement before signing.
- Repairs and utilities: Review your lease agreement to determine which repairs are covered.
- Terms: Determine the length of the lease and the penalty for terminating the lease if required.
- Making an offer: When you’re ready, your commercial REALTOR® will help you negotiate and draft an offer.