How to Execute A Commercial Real Estate Acquisition?
Are you thinking of investing and earning a reliable, stable and huge income?
If yes, think about acquiring a commercial real estate. Don’t wonder, it is absolutely true that you make your money through Acquisition and Disposition of Commercial Real Estate Austin.
What is the acquisition of commercial real estate?
Acquisition of commercial real estate refers to a process whereby the ownership right of a commercial estate (such as office, retail shop, hotel, malls, warehouse) is transferred from one party to another through a complex set of requirements.
The existing property is purchased, operated and then resold to others with or without improvements/renovations.
Acquisition of commercial properties requires huge investment. A standard procedure should be followed for acquisition of commercial or Industrial properties. Buying, owning, managing and selling commercial real estate Austin is a different process which will help to generate a return on investment.
Whether you want to purchase property to develop and operate your business or for investment purpose, a commercial real estate agent in Austin is well experienced and can help you in finding the right property that will suit your needs and generate high returns.
Let us now tour the different stages of Acquisition of a commercial real estate
Finding the right property:
Firstly, set your mind clear regarding the investment you need to make. Your concept of investment should be clear regarding the type of property, location, budget and expected returns. You can search properties on website displaying different commercial real estate. You can also view different properties by contacting a real estate agent and choose the one that fits in your investment criteria.
Conducting Market research:
After you shortlist the property suiting your investment plan, the next you require is to conduct market research. Each property that you have selected should be analyzed on the basis of geographic regions, submarkets, metro area and location. Research is made with the help of real estate databases such as Costar, Cerc Site Finder, LoopNet and CCIM.
Evaluation:
An underwriting analysis should be conducted. The selected property should be evaluated by answering critical questions such as:
Owner’s reason behind selling the property.
Price range for acquiring the property
Current rent and the possibility of increasing the rent
Improvement/renovations required in property
Capital cost associated with improvement and renovation
Whether the property’s location is relevant or irrelevant.
Expected investment returns.
Due diligence:
Another important stage in the acquisition process is due diligence. It includes investigating and verifying different information about the property.
Auditing the condition of the building to identify if any deferred capital is needed. (for instance, whether replacing roofing or floor coverings will be required in future)
Identifying environmental problems and whether there is a need for immediate reclamation or clean up.
Identifying ancillary properties such as parking structures and common areas.
Property tax amount paid last year and an outstanding amount of property tax.
Encroachments and legal issues if any.
Examining proper permits and zoning.
Commercial real estate Austin helps you in making a business plan which will help you to increase the value of property over time and generate stable income.
Final decision:
When the evaluation of property gives favorable results and you are satisfied that the investment is viable, a sell offer is made to the seller. After finalizing the deal improvements should be made on the property to generate attractive returns.
Bottom line:
Investment in commercial property is a profitable venture. Thorough knowledge of property values, rents, competition, market condition and transaction trends can smoothen the entire process of acquisition.
GW Partners Austin can guide you through the entire process of Acquisition and Disposition.
We have an experienced team and resources that can help you to find your next rental.
We effectively and efficiently help in acquiring an industrial properties, office space, retail property or land for commercial use.