Aren’t Industrial Agents Basically All the Same?0

Posted by Thomas Miller, CCIM

miller-industrial-properties-navigating-landlord-tenant-relationshipThe idea that industrial agents are basically all the same persists in some circles. On the surface, perhaps it’s easy to assume that since they’re all searching the same listings and in contact with the same people – particularly in a smaller market like northern Nevada – the actual agent him or herself doesn’t particularly matter. But a little thought quickly reveals how badly misinformed this notion really is. Still, if you’re going to generalize, it’s better to classify industrial real estate agents and brokers in two ways – the problem solvers and the order takers. Understanding which one suits your needs best is a quick way to narrow down your search for the right agent. … Read more →

Our posts are intended to educate commercial real estate users so they can make better decisions in their real estate use, investments, buying and selling. We encourage your input and commentary. If you are enjoying these posts and finding them useful, help spread the word via Facebook, Twitter, LinkedIn, Google + or email with the buttons above.

Five Questions to ask in an Industrial Real Estate Agent Interview0

Posted by Thomas Miller, CCIM

question markA few years ago, we ran a series debunking common industrial real estate myths. Myth #3 is this:  “Since all commercial real estate know what they’re doing, there’s no need to to conduct interview before I hire one.” That logic is flat wrong, and here’s why. … Read more →

Our posts are intended to educate commercial real estate users so they can make better decisions in their real estate use, investments, buying and selling. We encourage your input and commentary. If you are enjoying these posts and finding them useful, help spread the word via Facebook, Twitter, LinkedIn, Google + or email with the buttons above.

Commercial Real Estate Myths – Distressed Properties are Good Value0

Posted by Thomas Miller, CCIM

This is part of our ongoing series that debunks commercial real estate myths.

Myth #2: “Distressed properties are cheaper and easier to buy than those offered by a seller who’s under no particular pressure to sell.”

distressedproeprtiesIt may seem logical, but this train of thought derails pretty quickly. Here are three truths about distressed properties:

1.      Distressed sales often take much longer than normal sales to close – if they close at all. 

Chalk it up to difficult lenders – be it a lack of communication or sheer incompetence – but it typically takes many months to get approval on distressed properties. And in the end, a buyer may lose out on the property anyway, as well as any number of other opportunities that were missed as a result of holding out for this “good deal.” When you’re buying a foreclosure from a bank or dealing with a lender on a short sale, you can’t expect logical, rational or remotely timely decisions. Banks work on their own set of rules and have their own priorities. They make decisions based on the financials at the moment and usually don’t consider the future costs of a delayed sale or the condition of the property.

2.      Distressed sales are far more difficult to successfully close.

Even the most straightforward real estate transaction has complex aspects, and it’s the job of your real estate professional to help you navigate through the twists and turns, insulate you against surprises and do what he or she can to significantly streamline the process. When you’re dealing with a distressed property, lenders commonly bring an entirely new set of timelines into play. In many instances, just when it seems like progress is being made, we’re suddenly handed a new timeframe that throws the whole transaction into a tailspin – and that’s never a good thing.

3.      Distressed properties can often be in far worse shape than they appear thanks to their time of vacancy.

In many instances, the degree of distress to a property during its time of vacancy can be quite substantial. What’s more, it may not be easily discovered until the property is reoccupied and in full use again. Inexplicably, most lenders do not maintain any supervision over distressed properties – and they certainly do no maintenance. We’ve seen properties go through freezing winters with no heat in the building, resulting in split water pipes that only show up when the utilities are reactivated. We’ve seen landscaping go long periods with no watering, resulting in stressed plants that die after new owners take possession. Real estate that goes unattended for long periods can negatively impact the longevity of costly building systems, adversely affecting the new owners after a sale is closed. Unfortunately, trying to quantify the damages done by long periods of vacancy and lack of maintenance is challenging.

So what’s the bottom line when it comes to the true value of distressed properties? While some foreclosed properties may yield a viable and valuable purchase to the fortunate and savvy investor, that’s definitely the exception and not the rule. In this case, the sage advice of “Let the Buyer Beware” certainly holds true for distressed and/or foreclosed real estate.

Interested in more debunked real estate myths? Join our mailing list (just enter your email address in the green box to the right) to stay in the commercial real estate loop, and read our first debunked commercial real estate myth, “Why You Need an Agent.” If you have a specific question, fire away in the comments or contact us today.

Our posts are intended to educate commercial real estate users so they can make better decisions in their real estate use, investments, buying and selling. We encourage your input and commentary. If you are enjoying these posts and finding them useful, help spread the word via Facebook, Twitter, LinkedIn, Google + or email with the buttons above.

Commercial Real Estate Myths Series: Myth 10

Posted by Thomas Miller, CCIM

Myth #1: “I know how to surf the web for properties; I don’t need a Real Estate Agent.”

Commercial Real Estate Myths Series - Series 1
Commercial Real Estate Myths Series – Series 1 (PDF)

Ok, you have located properties on the web just fine, why do you need the services of a real estate agent?

Knowing how to access commercial real estate sites online does not relieve the need or the advantages of engaging professional real estate representation.

First of all, competent local agents are challenged to locate every potential site for clients using all of their resources…resources which you cannot access.

The likelihood you have located all of your viable options by checking websites is literally zero. Don’t shortchange yourself by looking at less than the entire market by trying to use search results that are likely incomplete and inaccurate.

Chances are that by outlining your company’s current and future needs with a professional industrial agent, will likely result in an adjustment to the type, size and nature of the property you believe you want.

Not to say that you will change from looking for a warehouse and end up in a circus tent…but, you may find other, possibly even better options, than you had initially considered.

Market conditions that might adjust your plans could be:

  • Market over-availability in certain segments
  • Market shortages
  • Special price breaks at certain locations
  • Multi tenant building advantages vs. stand alone building advantages
  • Location

A candid conversation with a real estate professional can yield a wealth of value when embarking on the property search process.

Property location is only one step in the process of securing a building lease (active link on ‘lease’ to the 13 step lease process article) or purchase. A professional real estate broker offers numerous services far beyond just assembling potential properties for viewing.

A top commercial agent knows the local market completely including:

  • where are the best values
  • landlords’ propensities
  • landlord accommodations to certain uses
  • who is the most motivated at this time
  • landlord resources and limitations
  • special lease term availability
  • and much more

In short, the agent becomes your personal guide through a territory you have not traveled before.
Client’s who tackle this on their own, with inexperienced agents or working through their landlord, can spend large amounts of their time with mixed results at best.

A top agent matches you with all potential properties that suit your needs…saving you time and energy looking at misfi t and overpriced and inappropriate properties already in play with another tenant or buyer.

A top agent knows all available properties, not just those that are listed on the web, so you see all possible properties, not just the ones you may have discovered. Agents are also aware of factors affecting property values that you may not be aware of. In short, they put the puzzle together for you quickly and efficiently.

Download Commercial Real Estate Myths Series: Myth 1 (PDF)

Miller Industrial Properties
Miller Industrial Properties offers vital, current market knowledge and objective, informed advice. We become part of your team and streamline the entire process. Our many years of service to relocating and local expansions give us a significant leg up in assisting you through the process. We are in the sole business of industrial real estate, allowing us to be well suited to advocate on your behalf to help secure the best possible lease rate or sales price, with the most favorable terms and conditions

We’ll do the previewing of potential spaces, get the questions answered, accumulate information into easily understood spreadsheets and set up an efficient tour of the appropriate spaces. We can also address other issues like environmental questions, licensing, permitting, incorporating, financing, and all items related to setting up your business. Our experience, knowledge and contacts help get your needs answered as quickly as possible. We know the territory, let us team with your firm and get you to the finish line quickly.

So, enjoy your web-savvy abilities, but don’t fall into the trap of believing that your computer skills translate into industrial real estate expertise that other professionals have developed over a lengthy career or hard work, study and successful transactions.

http://www.MillerIndustrialProperties.com

Our posts are intended to educate commercial real estate users so they can make better decisions in their real estate use, investments, buying and selling. We encourage your input and commentary. If you are enjoying these posts and finding them useful, help spread the word via Facebook, Twitter, LinkedIn, Google + or email with the buttons above.

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