As a property agent inspecting commercial property for sale, it is essential to ask lots of questions of the owner before the listing is signed. The main focus should be to understand the big issues in and around the property that can impact the price or the target market. That can be those including the following:
- Title and ownership of the property
- Energy consumption and ratings
- Environmental performances and threats
- Heritage or Native title matters
- Occupation arrangements and leases for the property
- Permitted uses for the property and zoning related to the location
- History of the property financially both in income and expenditure
- Nature of the improvements on the property and the functionality
- Occupancy areas and boundary surveys
- Plant and machinery ownership
- Car park capability and usage
- Air conditioning functionality and availability
- Services and amenities that serve the property
- Usage of the property today and previous history
- Precinct and neighbourhood factors that impact the property today
- Legal matters outstanding or ongoing
- Notices and orders over the property that are current or yet to be discharged
- Access points and roads to the property
- Redevelopment opportunities and any planning approvals
- Tenant business detail and future rent reviews and options
- Comparable properties in the area
- Details of any previous or current marketing campaigns relative to the property
These critical points give you a base from which to price the property. Ideally full disclosure by the landlord or owner of the property should always be encouraged and then documented. It is surprising how your notes of landlord comments and meetings will be of great value in any later disputes or negotiations.
The price of a property today is a balance of current performance, future use, and income potential. Astute purchasers of commercial property will do an extensive due diligence process before property settlement. To prevent problems the real estate agent has to fully check the property detail before marketing commences so the property promotion, negotiation, and settlement is not compromised.
In many ways the commercial property promotion is built around the target market. All adverts, brochures, internet marketing, and direct mail should be focused on that target market, their needs, their thinking and their timing.
So the right way to inspect a commercial property today is with an eye for problems, performance, and location. Record keeping and a checklist similar to the above will help you hone in on the key factors of concern before you price the property. Never price a property until you have all the detail to hand.