Buying a commercial property in Calgary is a significant investment in your portfolio. Many entrepreneurs make costly mistakes that can affect their investments and riddle them with expenses later on. It’s essential to take time with your REALTOR® to properly prepare for negotiations when it comes time to make an offer. Here are 4 tips for negotiating the best commercial real estate deal in Calgary!
Do your due diligence and research
In-depth research allows you to understand the property and the broader market conditions, which can greatly impact your negotiation strategy. Along with your REALTOR®, you should investigate the property’s history, including its ownership, past transactions, and possible problems like zoning restrictions or environmental concerns. Your Calgary real estate agent will compile a comparative market analysis, which helps gauge whether the asking price is fair and competitive.
Know your budget and limits
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.
If leasing, understand your lease terms
The lease agreement is the foundation of your relationship with the landlord and significantly impacts your business’s financial health. Pay close attention to critical provisions such as rent escalations, lease duration, renewal options, and maintenance responsibilities. Negotiate for favourable terms that make sense for your business needs and growth. Additionally, negotiate clear renewal options and terms to ensure you have the flexibility to extend your lease if you wish. By carefully negotiating lease terms, you can mitigate future risks and create a more advantageous environment for your business to succeed.
Get an inspection
If you have found a commercial property in Calgary that you think could be the one, you should always get a property inspection before you close a deal. Commercial property inspections differ 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 clarifies the property’s condition, allowing you to make more informed choices about the purchase or lease. If something troubling 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.
Work with Realty Unleashed to find and negotiate a commercial property in Calgary!
Realty Unleashed has successfully negotiated many deals since we opened our doors in 2018. Negotiation skills are one of the significant advantages of hiring a REALTOR®. When you are ready to purchase or lease a commercial property in Calgary, you must be prepared to negotiate effectively. If you need a commercial REALTOR® in Calgary, we would love to hear from you. Please fill out the form below; someone from our team will get back to you soon.