Often times, people believe that leasing a commercial property is no different than leasing a residential one. However, these are two completely different industries that have their own unique processes and rules. Purchasing a commercial property can be overwhelming if you aren’t familiar with the industry. Here are some of the FAQ’s people have about commercial real estate.
If a property isn’t the residence of the homeowner, renter, or subletter, then it’s considered commercial real estate. It consists of any real property that’s been used in a business context. It includes office spaces, retail facilities, warehouses, and even apartment complexes if it’s been used for an income-producing purpose.
While there are some similar concepts between commercial and residential real estate, there are also key differences. In the commercial real estate business, it is way more common for properties to be leased rather than sold. This is because commercial spaces are generally owned by a larger real estate holding company.
Commercial leases are longer than residential ones, ranging from 3-10 years on average. Residential buyers and sellers often have more consumer protection rights than those in the commercial business. Speciality commercial facilities require additional legal requirements that are specific to each area.
A commercial real estate broker, also referred to as a commercial real estate agent, helps clients buy, sell, or lease commercial properties. They act as the middle-man between the business owner and the property they want to lease or purchase.
They can assist in finding a commercial property or potential tenants, negotiating commercial leases, and ensuring that the move-in process runs smoothly.
In short, you do not always need a real estate agent to look at properties. However, some facilities may limit access to certain parts of the building without an agent present. There are some commercial properties that do not allow potential buyers to view them without an agent.
A buyer can always look at listings online, but it’s better to view a property in person before making the final decision. The real estate agent also has access to listings not featured online, so they can give you more options that fit your needs.
Want to find an ideal location for your growing Maryland company? At Newspace Commercial, we fully represent the tenant looking to find the perfect commercial space.
Born from AJ Properties, an Anne Arundel County based commercial real estate firm, Newspace Commercial is designed to focus solely on Tenant Representation services, ensuring that you find your perfect business space, avoid mistakes, and negotiate the best deal.