Share what you know with millions of people
Focus is the best place to turn what you know into remarkable content
0
Is there a difference between commercial and industrial real estate?
I want to open up a small equipment dealership and need something with a showroom and lot space. Should I be looking for industrial real estate?
Events
- Dos and Don'ts of Small Business Marketing May 29 @ 11 am PT
- Lead Nurturing 202: The Next Generation May 31 @ 11 am PT
- The Tricks to Paid Media June 6 @ 11 am PT
- Display Advertising for Brand Awareness June 20 @ 11 am PT
Related Activity
2 Answers
Greg, without knowing much about your business model, I would suggest interviewing and contracting a commercial real estate broker to help you out. Their fee is typically paid by the landlord and therefore there is no added out-of-pocket expense to you for access to their expertise. As a side, industrial real estate will typically have characteristics related to highway access, dock or overhead doors, and ceiling height, but may not offer the visibility that you require. You may want to ask the broker to look into "showroom" spaces, or visible office-warehouse spaces that can be adapted for your use.
Greg, what you might be needing is what is called flex-space or office showroom. Industrial space is usually for manufacturing and distribution and therefore lacks the retail aspect of what you need for your showroom.
Industrial space also often has special utility needs and is often in a part of the city specially zoned for industrial use.
By contrast, office showroom can be in a nice part of town adjacent to existing retail centers which is right where you want to be so that your customers feel comfortable coming to your showroom.
As another poster mentioned, it will cost you nothing more to retain a tenant/buyer's rep. This is analagous to when you buy a house if you get a broker to represent you as the buyer, the commission is the same and is split between the brokers.
But if you walk in a commercial building of course they are not going to suggest that to you. They'd be giving away part of their commission so many are thinking about how much more commission they'll make and will try to deal with you directly.
You also won't even know what questions to ask and unless you're a fantastic negotiator, your broker can save you lots of time and money, and give you piece of mind.
Don't think that an attorney can do this they will only get you a good legal document, not a good deal. Of course your attorney should be part of the process, but keep in mind that your broker can tell you if the Landlord's lease agreement is standard, saving you even more on your legal bills!
You can continue to look for and investigate space on your own just make sure to tell the Landlord or the selling broker that you have a broker when you first talk to them.
Mollie Mossman, CPA, CMA, Commercial Real Estate Broker, Dallas-Fort Worth, Texas
Answer This Question