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  • Carnan Properties
    If you're selling your home you need to get in touch with these guys
    The team at Carnan properties is amazing
    Written by: David F.
    Date Published: 2014-07-26

    "The team at Carnan properties is amazing! I was nervous about the process of selling but they were a pleasure to deal with and made the whole process very straight-forward. If you're selling your home you need to get in touch with these guys."

  • Carnan Properties
    Selling our property couldn't have gone any smoother thanks to Carnan Properties
    They're personable, professional and great at what they do."
    Written by: Joel R.
    Date Published: 2014-08-21

    "Selling our property couldn't have gone any smoother thanks to Carnan Properties. They're personable, professional and great at what they do."

Questions related to Commercial Property For Sale

Things to Consider When Looking for a Commercial Property For Sale

  • September 12, 2016

    Properly Valuating Commercial Property For Sale:

    Commercial property differs greatly from residential property in the way that its value is determined, and only by learning the right factors can you buy/sell these property types with confidence. You will want to rely on a local realty agent with extensive experience in the commercial sector, but you should also learn the basic principles of valuating commercial properties:

    1. The value of a piece of commercial property is determined by how much profit it can produce in a given period of time. This is called the “net operating income’ (NOI) and is calculated by subtracting operating expenses from the gross income the property enables. Remember to include maintenance costs in the operating expenses along with day-to-day business expenditures.
    2. Although the operating expenses used to find NOI do not include taxes, interest paid on mortgages, and depreciation, these factors also affect the overall value and must be taken into account.
    3. A straightforward comparison of selling prices of similar buildings recently sold in the same neighborhood is used for short-term valuations, but long-term investments are valued based on the capitalization rate typical to the area. The cap rate is obtained by dividing the NOI by the sale price, and any property not likely to produce enough NOI to reach a good cap rate is priced too high.
  • July 11, 2016

    3 Tips for Buying Commercial Property For Sale

    It is no secret that commercial property for sale is evaluated, purchased, and used in ways very different from the norms of the residential real estate market. Knowing how to navigate the commercial market is not automatic, it requires real-world experience to achieve.

    Luckily, beginners can avoid the common pitfalls and reap the benefits of others’ experience by following these three simple tips:

    1. Know how to locate the best prospects. Online searches and classified ads are a good place to start, but you should also rely on commercial realtors with detailed knowledge of local markets. You may even want to hire “birddogs” to watch for leads and inform you for a referral fee.
    2. Commercial real estate is strictly an investment. This is not the case with residential real estate, where aesthetic and sentimental values are a factor. In the business world, usable square footage and revenue potential are what matter. Commercial property is valued by estimating its Net Operating Income (NOI), which is annual income minus operating expenses, and then subtracting your mortgage payments to find “cash on cash” (how much money your money is making you).
    3. You will need to use more cash to secure the loan. Few buy commercial properties outright due to the high price tag, and you will often need more cash up front: 30% down rather than the 20% that is customary in the residential market.
  • May 10, 2016

    When searching for a piece of commercial property for sale that closely approximates a “perfect match,” it is critical to move with caution and not with haste. Since prime deals tend to come and go quickly, you will need a local realtor with quick access to inside information and intimate knowledge of the local market. Plus, it’s a good idea to apply some basic principles of preparation and prudence, including the following:

     

    1. Scrutinize the location from every angle: Consider proximity to your client base, to your employee base, and to your suppliers. Make sure there is quick access to public transportation routes, and if necessary, rail and port facilities. Investigate the neighborhood’s past and weigh its likely future performance to avoid making a long-term investment in a “hot spot” that soon “cools off.”

     

    1. Never sign before doing due diligence: The physical condition of the property, its age, history, and present suitability, need to be assessed by inspectors, engineers, and appraisers to tell you its true value. If there are hidden repair needs, risky liabilities, or environmental hazards, far better to discover them before making the purchase. You will then be able to either walk away or, if you are still interested, negotiate for a reduced price.

     

    1. Assemble a team of experts to assist you: Not only a commercial real estate broker but other assistants as well should be enlisted to help you make the best possible decision. A CPA will help you analyze costs, a mortgage broker can help you land the best loan terms, and attorneys with real estate background offer contract “deciphering” and negotiation.
  • March 10, 2016

    Published by Carnan Properties

    For most businesses, owning their own piece of property is far superior to leasing, the main benefits being: elimination of high and volatile rental fees, greater control over overhead, lower taxes as the property depreciates, and the ability to improve and resell the property for a profit. Knowing, however, which commercial property to invest in can be fraught with complexity, and knowing the best time and place to buy can vary from year to year.

    Some of the most important things to consider when looking for the piece of commercial property for sale that best fits your needs are;

    1. Location is Key: Businesses need to be located near their customers, workforce, vendors and suppliers, and transit connections. They also need to be in the right zoning district and, if possible, in a jurisdiction with low taxes and minimal regulations.
    2. Buildings Must Be Evaluated: The physical condition of the property should be thoroughly evaluated even if it takes a month or two to complete due diligence. The property’s history of prior use, structural soundness, and liability risk must be known quantities before closing to avoid costly repairs and lawsuits after the purchase is finalized.
    3. You Need a Team of Experts: Business owners are highly skilled in their areas of expertise, but commercial property acquisition requires niche knowledge for the safest, most efficient transfer possible. Assembling a team of specialists, including an accountant, an attorney, a mortgage broker, and an experienced commercial real estate broker is a wise move that will guard you against making any costly mistakes.
  • January 10, 2016

    Published by Carnan Properties

    Purchasing commercial property is a much more intense undertaking than is the acquisition of most residential properties, simply because of the sheer cost involved.

    Three key areas to consider when looking for the right piece of commercial real estate to help your business grow and succeed are:

    1. Property Selection: First, insist on the exact type of property that fits your needs, be it a retail outlet, an office building, a factory, or a warehouse. Second, invest some time in deep market research on the viability of the property for your particular purposes. Third, investigate the historical performance of the property over at least the past few years.
    2. Property Financing: To begin with, reduce your financing needs by being a good negotiator. Independently research the property value, and ask for discounts or corrections if you notice any significant problems. When looking for a lender, opt for one you have a pre-existing relationship with and with extensive experience in commercial real estate.
    3. Property Maintenance: Have the property evaluated before signing the contract or you could end up discovering defects too late and be stuck paying for the renovations yourself. Also, be sure to account for future maintenance expenses when weighing the property’s worth.
  • November 26, 2015

    Published by Carnan Properties

    When you are considering purchasing commercial property, there are a number of things to consider.

    1) First, you should make sure your business is stable and steady enough to handle a new property. Do you run the business alone, or do you have staff? If you don’t have staff, you need to consider how much it will cost to hire two or three people to help you.

    2) Second, do you have the finances to afford the monthly payments of this new property? It is important to budget, and setting up a budget before you ever start looking at the commercial property for sale is important. While you are looking at finances, think about what the differences might be between purchasing or leasing the property. Often, purchasing the property will save you money in the long run. Renting often has its drawbacks, but you do have the security of knowing someone else will take care of repairs and fixing problems. But, if you rent, the rent may go up at the end of the lease.

    3) Finally, it is important to think about who you are going to go to for financing. Make sure your lender is reputable and that you get the best rate around. Consider securing your financing before you go shopping, so that you know how much property you can afford.

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