"from a commercial site, thought ya might like it"

W

WebBoard

Guest
From: The Wife


Q - What is commercial and industrial real estate?

A - Commercial real estate is typically retail shops and offices while industrial real estate generally refers to factories and warehouses. The term "commercial real estate" is generally accepted these days as covering industrial as well as commercial real estate.



Q - Some people talk in feet and square feet and others in metres and square metres and it's confusing. What does it all mean?

A - Despite the change over from imperial to metrics the old ways still persist as many people still cannot fully relate to metrics. The conversions are:

Length: 1 metre=39.3701 inches
1 metre=3.28084 feet
Area: 1 square metre=10.764 square feet
1 hectare=2.47105 acres





Q - What is the difference between a warehouse and a factory?

A - Warehouses are primarily for storage and distribution and need to have a high roof line for pallet racking and other storage (6 meters minimum) and good access for large vehicles carrying containers.
Factories are for manufacturing and are less reliant on height depending on the manufacturing industry involved. These premises would perhaps need to be in close proximity to public transport to cater for employees.



Q - Is commercial and industrial real estate a better investment than residential real estate?

A - It's a matter of opinion in many respects, however well located and well managed commercial or industrial real estate can perform extremely well and can pay huge dividends over the long term. Commercial and industrial real estate generally offers higher returns than residential real estate with less tenant turnover and tenancy problems. Remember that commercial and industrial tenants generally take minimum lease terms of 3 years while residential tenancies are often very short term which is costly as every time your property comes vacant there is loss of rent, advertising costs and leasing fees.



Q - How can commercialrealestate.com.au help me?

A - If you own, lease or need to buy or sell commercial or industrial real estate commercialrealestate.com.au is an essential tool that will help you achieve your aims quickly and efficiently. The agents and other professionals on this site are fully qualified to provide the correct solutions to your needs. Search for property in any State of Australia . Choose any agent in any State with confidence knowing that they are fully conversant in all aspects of commercial and industrial real estate. List your requirements or list your property directly onto the site and the agents most able to assist will contact you without delay. Only member agents will see the entry and respond to you if they can assist. Put simply, commercialrealestate.com.au is an essential tool for the new millennium that provides a better more efficient way of communicating and achieving your aims in the highly specialised field of commercial and industrial real estate.



Q - Why use a specialist commercial and industrial real estate agent?

A - Commercial and Industrial real estate valuation, marketing and management requires specialist skills. Real estate agents who deal predominantly in residential real estate have skills pertaining mainly to emotive residential marketing while commercial and industrial real estate agents require a high degree of analytical ability to assess values and future potential of property correctly. Also required is the ability to converse in a meaningful way with the buyers, sellers and tenants of commercial and industrial real estate who are business oriented and require a high degree of specific knowledge in this class of real estate. Some agencies deal in both residential and commercial and industrial real estate and that is acceptable as long as there is a specialist team dedicated to the non-residential sector.



Q - Why should I have my commercial and industrial property managed by a specialist agent, surely anybody can collect the rent?

A - Collecting the rent is only part of the job. When you engage a specialist agent to mange your commercial and industrial property they do just that - they manage your property. Management means more than just collecting the rent. It involves:


Advising on acceptable lease structures so that your investment not only retains its value but also has growth built in wherever possible.
Negotiating lease terms with the tenant to obtain results that ensure that the value of your property is enhanced by the lease and not restricted or worse - devalued.
Dealing with your tenant in an expert manner regarding queries and problems that inevitably arise from time to time with the property and/or tenancy - these negotiations should only be handled by professionals to achieve the best outcome.
Ensuring the property is maintained.
Advising the owners on rental and sale values and generally keeping them informed of market trends.
The future value of your property is dependent in no small way by the quality of it's management - to take chances with a non specialist is unwise and likely to result in rough running for your investment and lower returns.



Q - Do specialist commercial and industrial real estate agents charge more?

A - No. In any case fees are not regulated and are negotiable. Any successful investor will tell you that if you choose the right agent they are worth far more than the fees they charge. Many wealthy property investors owe their success to their choice of professional commercial and industrial real estate agent and they did not gain that agent's loyalty by cutting fees. Never choose an agent on the fee structure alone. The final result is where the money is made not through negotiating lower fees.



Q - How do I choose the right agent?

A - Start right here on commercialrealestate.com.au contact several, ask if they have expertise with the type of property you are interested in and choose the one you feel most comfortable with. If you're unsure who to choose list your requirement or your property directly on the site. The member agents that feel they can help you will then contact you.



Q - I own commercial and industrial real estate and I collect the rent myself but I am unsure of current rental and sale values. How can I get help?

A - To begin with you probably should not be managing the property yourself. The pitfalls are many and over time you may find that your property is not performing, as it should. If you manage your own property investment you should have your property valued by a qualified professional on a regular basis to ascertain your true position. See the Valuers section of commercialrealestate.com.au in your State for a selection of the very best.
Remember that an "opinion of value" is not the same as or as comprehensive as a valuation. A formal valuation is a document that can be relied upon and is used to assist in obtaining finance and is required by lending institutions.



Q - My business has grown and I need to relocate to larger premises. I have 3 years remaining on my existing lease. What can I do?

A - This situation requires coordination as you need to locate and secure new premises and sub -let or assign your existing lease to a new tenant with as little time lapse as possible between the two transactions otherwise you will be paying double rent.
Paying double rent for a short period of time at least is highly likely depending on demand for property in your location. Choose an agent from our Member Agents list or list your requirement in your State and one or more agents will contact you to offer a solution.

~Life is a daring adventure, or nothing at all~
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1
From: Sergey Golovin


Yap, that’s good one you digged out TW.

I do like to open any book on residential real estate and very first thing you will find - Residential real estate outperformed shares ... for the last number of years...
Open one on shares and - share market outperformed real estate...
Commercial real estate outperformed residential...

To be or not to be that is the question.

Serge.
 
Last edited by a moderator:
Top