Whether you are a business owner or an investor, finding the right commercial real estate is at the heart of your revenue generation strategy. If you are looking for commercial real estate in Rio Grande Valley to lease or invest in, the best solution is to partner with a commercial real estate agent with experience in the region. However, there are questions you must ask your commercial real estate broker when considering a prospective property to purchase.

The questions vary depending on whether you are asking as a business owner or as an investor.

As a Business Owner

Following are the main questions you need to ask as a business owner looking to lease commercial real estate:

1. How Accessible is the Location?

As a business owner, your location needs to be in an accessible and visible area for your customers’ convenience. You will lose many potential customers if the location is inaccessible.

2. Is Parking Space Available?

Whether you have a B2B or B2C business, having parking space nearby is extremely important. If your customers cannot park their car, they might find it inconvenient to visit you.

3. Is It a Single Unit or a Shared Building?

Asking about tenancy is important because you should ideally be aware of how many other tenants are in the same building and the nature of their business. It helps get a general idea of the place and you can always ask them about their experience.

4. What are the Lease Terms?

Most business buildings either have a double-net or triple-net lease. Knowing which one is applicable will help you estimate costs and feasibility.

5. What is the Status of Property Condition/Maintenance?

Most properties are already classified as type A, B, or C, however, you should be aware of their exact condition as well. Ask about the status of HVAC, maintenance frequency, routine repairs, etc. to have an idea.

As an Investor

Just like the business owner, a commercial real estate investor should also have a good understanding of the kind of properties they are investing in.

1. What are the Ideal Lease Terms?

Ask your commercial real estate broker about the ideal lease terms for the property you are interested in based on regional market practices. It makes a huge difference in terms of cost, making it an important factor.

2. What Is the Market Growth for the CRE Type I’m Interested In?

Aside from general trends, the market growth trends for commercial real estate property types can differ regionally. Ask your broker the growth trends for commercial real estate in Rio Grande Valley and choose the type with the best long-term potential.

3. What are the Property Appreciation Trends in the Area?

Property appreciation plays a huge role in determining the income potential of a commercial real estate property. Make sure you ask about the appreciation trends for properties in the region.

4. What Is my Expected ROI?

The entire point of investing in commercial real estate is to have a secure source of earning. Therefore, before deciding on a property, ask your commercial real estate broker the expected ROI on the property based on historical trends and market predictions.

5. What Is the Status of Property Condition/Maintenance?

You will lose your money if you end up investing in a poorly maintained building that few businesses are willing to sign up for. Always ask about and inspect the property condition to make sure you do not lose money on it.

Conclusion

To conclude, as a buyer and seller in commercial real estate, you will need to be privy to several details to know if they are profitable options. Always ask your commercial real estate broker the necessary questions so you have all the information.

If you are looking for commercial real estate in Rio Grande Valley, please contact us. CHRE has been in the commercial real estate business for several years and we have the experience and expertise to help you make the right choice.