Commercial real estate investment isn’t the easiest endeavor, but that doesn’t mean it can’t be one of the most profitable ones you take on this year. The following tips will help you sort through your commercial real estate in Denver and make smart decisions about which properties to buy and which ones to pass up. Make sure you are well versed in these areas before you begin searching!
Market Strategy
Denver is a hot city for commercial and residential real estate; however, that doesn’t mean you should sell your home or property quickly. You can get more money by taking your time and targeting a specific audience. If you’re trying to sell your commercial property in Denver, it helps to have a firm grasp of what’s currently out there.
Data Collection
So you’ve already done some research on commercial real estate pricing and trends. Great! Now it’s time to get your hands dirty. Since the commercial property is a business investment, you need to think like an investor and make sure you thoroughly understand what your risks are before making any decisions. One way to accomplish that is by investigating each building’s financial history. RE Professionals offers a lot of great data but there are other sources as well (and it may be wise to use more than one). Get current information such as capitalization rates, rental rates, and occupancy rates.
Property Presentation
We’ve all heard that location is everything. While it may not be true, it can be a deciding factor when potential buyers are making their final decision. When trying to sell commercial real estate in Denver, Colorado, it’s important to think about your property’s location and how that fits into what your client wants. For example, there are several different types of commercial real estate in Denver ranging from apartments to office space to retail outlets. A grocery store isn’t going to want anything but a prime location and plenty of visibility; if you have an office building that faces away from major roads or is tucked away on a side street, you might struggle to find a buyer.
Legal Advice
One of the first steps to buying commercial real estate is creating an LLC. In short, LLC stands for Limited Liability Company. This type of business entity offers you several advantages that you won’t get with a corporation or a partnership. The most notable advantage to forming an LLC is that it protects your assets from debts and liabilities of your business. For example, if you owned all of your property under your name and had 5 million dollars worth of debt to back it up then anyone could sue you personally for that amount and force you into bankruptcy should they win their case against you. It’s important to remember that any assets held under an LLC are not separate from their owners but instead belong directly to them as individuals.
Marketing Ideas
To sell commercial real estate in Denver you have to think of new and creative ideas to bring people in. The most effective thing you can do is make sure that all your marketing efforts are planned out from start to finish. You need to know what you’re going to say and how you’re going to say it before you do it, or else things might not go according to plan. Here are some of our favorite marketing tips for commercial real estate in Denver, CO:
That’s why we recommend staying away from broad names (ie ‘real estate agent’) and instead of creating a name and identity around each service.
For example, if you’re a commercial realtor and broker then focus on selling just commercial properties – don’t try to tackle residential at the same time; instead, specialize! Then when a prospect looks online for commercial properties for sale in Colorado, they’ll come across your page – rather than someone who sells both residential AND commercial properties (which would be more like ‘real estate agents). When prospects call you up they’ll already know what they’re looking for; they will almost always cut straight to their inquiry without having wasted time floundering around trying to figure out what they want.
For example, if you’re a commercial realtor and broker then focus on selling just commercial properties – don’t try to tackle residential at the same time; instead, specialize! Then when a prospect looks online for commercial properties for sale in Colorado, they’ll come across your page – rather than someone who sells both residential AND commercial properties (which would be more like ‘real estate agents). When prospects call you up they’ll already know what they’re looking for; they will almost always cut straight to their inquiry without having wasted time floundering around trying to figure out what they want.
Negotiation Skill
If you want to sell commercial real estate in Denver, Colorado but aren’t getting any calls from buyers or investors, start thinking about your negotiation strategy. Decide how much you’re willing to walk away from and how much you would accept. Set an offer and stick with it; don’t get tempted by a last-minute offer just because it will make both of you feel better. Make sure to have everything documented when buying or selling commercial property so that there is no question about who is responsible for which expenses and maintenance bills. This can save you some money when things go wrong.
Closing the Deal
Many people who are new to commercial real estate fall into a trap: believing that a property’s value will skyrocket once it is sold. When you think of buying and selling commercial property, it may be tempting to focus on getting top dollar at any cost. But while that isn’t always feasible—especially if you’re just getting started—it can lead you to make rash decisions or over-commit financially. And let’s face it: nobody wants to sell a property for less than what they paid for it. Instead of worrying about maximizing profits on every deal, take more time with each transaction and ensure you close when your goals are met—not just when someone says yes.
