Buying a commercial property in Edmonton is a considerable investment. Many entrepreneurs make costly mistakes that can affect their investments and riddle them with expenses later on. It’s paramount to take time with your Edmonton commercial REALTOR® to properly prepare for negotiations when it comes time to make an offer. Here are 4 tips from us for negotiating the best commercial real estate deal in Edmonton!
Be aware of your limits and budget.
Settling clear objectives and knowing your budget and limitations are fundamental in commercial real estate negotiations. Before you enter into negotiations, you should understand any financial constraints, including your budget for the property or deal. Knowing your limits ensures that you don’t overextend yourself to make a hasty decision that could have long-term financial consequences. Defining your objectives is also crucial because it helps you prioritize what matters most in the negotiation process: the purchase price, lease terms, specific contingencies, or other factors. Clear objectives also provide a benchmark against which you can evaluate potential offers and counteroffers. When you enter negotiations with a well-defined budget and goals, you are better equipped to make informed decisions and negotiate effectively to achieve your desired outcomes while protecting your financial interests.
Don’t skip the inspection.
If you have found a commercial property in Edmonton that you think could be the one, you should always get a property inspection before you close a deal. Commercial property inspections are different from home inspections in that commercial inspectors examine the property’s roofing, electrical wiring, heating, ventilation, cooling, plumbing, and structural integrity. When your inspection looks at these things just mentioned, it defines the property’s condition, allowing you to make more informed choices about the purchase or lease. If something alarming comes up in your inspection, you can ask for money off or for the current owner/lessee to fix it. The allocation of maintenance and repair responsibilities can substantially impact your operating costs, so ensure those terms are fair and clearly defined.
If leasing, understand your lease terms.
The lease agreement is the basis of your relationship with the landlord and seriously impacts your business’s financial health. Pay close attention to critical conditions like lease durations, rent escalations, maintenance responsibilities, and renewal options. Negotiate for fair terms that make sense for your business needs and growth. You should also be prepared to negotiate clear renewal options and terms to guarantee you have the flexibility to extend your lease if you want to. By thoughtfully negotiating lease terms, you can avoid future risks and create a more favourable atmosphere for your business to succeed.
Do your due diligence and research.
In-depth research allows you to understand the property and the broader market conditions, which can significantly impact your negotiation strategy. Along with your Edmonton commercial REALTOR®, you should investigate the property’s history, including its ownership, past transactions, and possible problems like zoning restrictions or environmental concerns. Your real estate professional will put together a comparative market analysis (CMA), which helps measure whether the asking price is competitive and fair.
Realty Unleashed can help you find a commercial property in Edmonton!
Realty Unleashed has successfully negotiated many deals since we opened our doors in 2018. Negotiation skills are among the most considerable benefits of hiring a commercial REALTOR®. When you are ready to purchase or lease a commercial property in Edmonton, you have to be prepared to negotiate effectively. If you need a commercial REALTOR® in Edmonton, we would love to hear from you. Please fill out the form below; someone from our team will get back to you soon.
