Commercial Property Sales and Leasing – How to Inspect a Commercial Property to List

Inspecting a commercial property in preparation for sale or lease is a critical process that will make or break the marketing method and success. Real estate agents are best to use a checklist for this inspection process. In only this way can you really cover the critical issues and ask the right questions. Every property type is different so different checklists are required depending on how many types of property you may serve in your local market.Inspecting the commercial property should occur before any price or rent is set on the property. It is remarkable how many things you will find as a real estate agent if you inspect the property well and ask the right questions of the property owner.The owners of property sometimes forget to tell you the most important things that can impact the sale, and at other times they prefer not to tell you the most important things. Either way it is up to you to get to the bottom of what the property really is and how you can take it to market. In each and every case of inspection, take considerable notes from the process. You never know when you may need the record of what was said or found during the inspection.Here are some things to think about in the inspection and information gathering process: Size and shape of the land
Competitive properties in the area together with supply and demand for lettable space in that market
Access points for the property and any restrictions that may apply to that access (for example a main road and imposed times of access)
Any orders or notices that can impact the property and may well be outstanding
The type and size of improvements on the property, the age, and the level of functionality
The location of the improvements on the site and how they could serve the occupants
The services and amenities that serve the property and the tenants
Details of any tenants in occupation and how that occupation is documented
Rents that apply to the property and under what documentation is that secured
Outgoings for the property and the recoverable nature of those outgoings
The income and expenditure budget for the property together with a history of financial performance
Ask about any matters relating to environmental, heritage, cultural, or other site related rules and orders
Energy supply, consumption, and energy ratings for the property
History of the property and tenants (look for things that may add to or detract from the marketing)
Check out the neighbouring properties and how they impact the subject property (if at all)
Look for threats in the location that could impact the property and its occupants (such as a river that may flood or unstable soil etc.)Diligence and a good questioning mind is really what it takes to inspect a commercial property. The more you know about the property, the easier it is to set a price or rent. When you then set the right marketing strategy for the property that is aligned to the target market then the sale or lease promotion proceeds much more effectively.

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