Skip to main content

Tips for First-Time Commercial Real Estate Investors



Considering investing in commercial realestate? Commercial investments can be a great way to generate greater returns and expand your sources of income. The high possibilities for success coupled with a booming global market for warehouses make commercial properties an appealing investment opportunity.

On top of these benefits, the CRE market has long been regarded as one of the safest investment routes - and even more so amidst conversations of changing economic tides. Foreign investors from all around the world are choosing to pick up commercial properties for their dynamic, lasting, and stable benefits.

While investing in the commercial arena can be a profitable decision, expert insights can help streamline success. Start off your CRE investments strong with these  pieces of advice: here are some helpful tips to help new investors find, negotiate, and manage their commercial real estate assets.

Get Smart with Negotiations

Investment negotiations are all about strategizing. Before jumping into a heated discussion to negotiate the deal’s terms, come up with an all-star plan. Be sure to keep these 4 points in mind:

●        The art of commercial deal-making relies on tact. Consider your counter-party’s perspective when planning your approach and try to appeal to their wants and needs.
●        Sometimes, the passive route is the best way to go. Expert investors are pros at taking the tone of one who doesn’t really care which way the deal goes. This reverse-psychology tactic can instigate powerful outcomes to boost the deal.
●        Don’t shy away from silence. Take time in between listening and speaking to re-evaluate the current trajectory of the conversation and see how you can gear it towards your advantage.
●        When it comes time to review the deal’s key terms and details, make sure the interaction happens in person. Investors should avoid discussing sensitive information over the phone or online. Plus, you’ll be cutting down on the potential for misunderstandings.

Due Diligence is Key

As in almost any business situation, the more you know, the better. Whether you’re a seasoned CRE investor or just dipping your toes in the field, everyone needs to stock up on information before moving forward. Due diligence is required in every area. Investors should know all about the property itself and counterparty.

Remember: it’s all in the details. Don’t skip over anything. Putting in the time and effort to study up on the deal beforehand can pay off exponentially into the future.

Show Them You Mean Business

New investors who find themselves in a highly competitive buyers’ situation need to get serious.

A great way to stand out from the crowd and assert your position as a strong buyer is by cutting straight to the chase. Investors can assert their presence amidst a vast pool of competitors by reaching out to the selling party with data, comparables, and some assurance to your buying capacity. 

This is a great way to strengthen your offer, appeal to the seller, and get in good favor with the deal’s listing agent.

Don’t get caught up in the stress of commercial investing and jump straight to the high-yielding portfolio with these  insights.

Comments

Post a Comment

Popular posts from this blog

4 Senior Housing Trends That Will Continue to Change the Space in 2020

Senior housing developments have been a popular conversation within the commercial real estate business. As the life expectancy of seniors keeps getting older and older, the growing elderly population faced a serious housing crisis in 2019. The 80+ population skyrocketed before CRE could keep up. And when it finally did, there was a lot of work to do. In order to accommodate today’s aging population, senior housing developments were a serious need. Even though investor demand started off slow, the sudden boom motivated commercial real estate developers and investors to take action and begin making moves. With more CRE pros jumping on the senior housing market opportunities, the competition went from 0 to 100 in no time. As a result, an amenity-war has broken out - but it’s unlike anything you’ve ever seen before. Let’s look at these 4 senior housing trends that are redesigning the senior housing module in 2020 and beyond: In-House Medical Services Seniors ...
Post a Comment
Read more

NAI Emory Hill Sells Wilmington Shopping Center

  Wilmington, DE – NAI Emory Hill ( www.naiemoryhill.com ) is pleased to announce the sale of a 8,710 square foot shopping center located at 2308 Concord Pike in Wilmington, DE to The Wittig Family at DSM Commercial. Dave Morrison and Jim O’Hara Jr., of NAI Emory Hill, represented the purchaser and Seller in this transaction. This retail center is anchored by Mattress Firm, Green Drop and China Inn. The center is strategically located at the intersection of Sharpley Road and offers a great retail location along the busy Route 202 corridor. NAI Emory Hill is a completely full-service commercial and residential real estate firm serving Delaware and the surrounding counties of Maryland, New Jersey and Pennsylvania. Founded in 1981, we have the resources to design, build, finance, lease, sell, manage and maintain commercial and residential properties throughout the Mid-Atlantic . Learn more about our services at: www.propertymanagementdelaware.com www.emoryhillhomes.com
Post a Comment
Read more

Protecting NOI in the Senior Living Space

When observing the latest trends in senior living, don’t jump to any conclusions - make sure you’ve got the whole picture first. CRE’s senior living sector is facing low occupancy rates - but that doesn’t mean the industry isn’t standing strong. When it comes to NOI, occupancy isn’t everything. While a property’s occupancy rates can act as the main contributor to net operating income, there are other elements that help fuel profits for commercial real estate investors . So what’s going on in the senior living spaces that are sparking turbulence for commercial real estate? Here’s a breakdown: Construction is Booming For the last few years, senior living spaces have been undergoing a surge of construction. Unfortunately, this elongated period of growth has taken a major hit on occupancy rates. In the five years between 2014 and 2019, national occupancy rates for senior living facilities have dropped 2.5% . As reported by the National Investment Center for Senior H...
Post a Comment
Read more