How commercial properties have changed.
The internet has had a great impact on the operation of commercial properties. Initially, there were brokers that buyers would contact and issue them with their requirements they have to meet before getting the commercial property of their choice. These brokers helped many dentists and doctors lease medical office space for rent in their area. Once contacted, the agent would therefore go through the process of going through his books and identify the properties that would meet the client’s requirements. The client will thus be contacted and taken through the process to identify the best properties.
During this time, the commercial agent dealer had to do all the leg work including contacting the client because he or she has no clue on where to begin. This facilitated the sales process where the agent would look for a property nearly matching the clients taste and most would involve convincing the client the property suits them. Inception of the web has seen a drastic change where commercial properties have portals where clients can place their listings. The client has been empowered with more knowledge making them make better decisions. The internet allows them identify the property they need, the location and its size. Before approaching the client, they already have the information they need and narrowed on the choices they want. After the leg work is complete, the selling process begins with the client releasing information on the price, availability and the terms of renting or sale.
Dental and medical office spaces
It is evident that most estate brokers generalize their work. They help all specialists from accountants to retail owners help get good office space. However, with medical and dental practice, this approach may not be the best. This is due to the fact that healthcare has its own unique needs and hence need for a deeper understating. The medical field is unique due to the following aspects;
· For privacy, the dental and medical practice requires many rooms which will also have a waiting area.
· The practitioners may need rooms such as the reception area, handicapped bathroom, lab area and the drug storage area. This thus requires many rooms.
· Does the area provide rooms where the medical practitioner may need to include a pan area, a bathroom, consultation room and staff room?
· They require an area with low medical practitioner’s density to avoid much competition.
· Dental offices may need smaller rooms and will always look for cheaper offices.
· It is also necessary to ensure the office is well accessed by public transport.
· Does the premises have enough parking for the patients and the staff?
Why they should contact real estate agents?
Working with a professional medical tenant agent is good because they help one determine factors in the long term that will affect the business. They also know where the best medical premises are even before they are listed in the market and reduce the gap between the landlord and tenant facilitating lease terms flexibility.
Commercial property and residential property management.
There exists a straightforward relationship between the landlord and the tenant whereby, he or she is happy to pay the rent without issues and the landlord is happy when maintaining the property and ensuring the tenant is comfortable. At times, this relationship is damaged and that leads to the introduction of the property management team headed by the property manager. The management services includes ensuring;
· Rent collection,
· Day to day liaising with the occupants.
· Quarterly statements that indicate rent collection and the incurred costs.
· Supervision of maintenance and repairs.
· Admitting new tenants and filing of the transaction documents.
· Collection and proper disposal of wastes to protect the environment.
The property management concept has seen the introduction of the property management companies where property owners rely on them to have their property managed in the best way possible. They are able to work with the property owners reducing the gap between the tenant and the landlords ensure maximum returns to the landlord. It helps the management have reviews on rent, renewing of lease and make sure the rent paid match the market prices. The companies therefore, will help the management by providing RICS and market valuers that help the landlord with proper asset management.
The property management company takes care and ensures three principles are met;
· Technology sells- when a building has old and outdated features it is hard to compete with the big fish. The property manager should therefore insist to the owner to adopt the latest technology in the market.
· Communication- this a key attribute and it’s their duty to tell the tenants if a major renovation is going to affect them in any way.
· Green sales- going green and adopting environmentally friendly features helps reduce the vacancy rates ensuring high returns.
The real estate market.
Real estate market refers to the sale and purchase of compromised land and buildings including other natural resources such as plants and animals, water and mineral deposits. The media often refers it to real estate market from the view that it only involves residential dwellings. However, it can be grouped into three broad categories I.e. commercial, residential and industrial real estate. Industrial real estate include mines and farms while residential real estate may comprise housing units, undeveloped land and houses. The commercial real estate on the other hand includes Office Space, rental stores and warehouses.
The real estate includes real property which buildings and land and the right to use this whereby owners are at liberty to occupy them hence, regarded to be their personal property. The personal property consists of fittings, personal possessions and furniture. It can also include purchased bonds and securities. Owning a home is the most common type of real estate investment where many people are able to finance home ownership through acquiring mortgages. The real estate market allows for this type of relationship where one is able to be given a bank loan (mortgage) either at fixed or at a varying rate. Many customers however opt for fixed loan rates as they do not fluctuate. Mortgages however have many fees that increase the overall cost as they are added onto the initial loan
The leasing or renting of commercial real estates, require a heavier investment. This is because, the contract lasts for a longer time and the costs are calculated on the basis of returns calculated per square foot. Also, some commercial real estates require addition of a good will and hence a huge down payment.There are two ways to invest in the real estate market i.e. through direct buying of land parcels or the properties and secondly through purchasing of shares from the company. A direct investment in the real estate business is more profitable as one is able to get profits or losses by revenue obtained from the leases or rent and general appreciation of the value of the real estate shares.