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So you’re entering into negotiations to buy, sell, or lease a property, and you want to get the best deal that you can, while at the same time, you want to set the proper tone for negotiations.
Some people prefer to manage their properties by themselves, and some people prefer to delegate that responsibility over to a property management company instead.
With the Holidays now upon us, this can seem like a normal time of year for the pace of life to begin to slow down, and for all of us to begin keeping an eye on the New Year, too. So, with this in mind, what is it that you want to accomplish in commercial real estate in 2020? Do you want to buy an investment property? Do you want to sell one or maybe even exchange into another investment property instead? Or maybe you’ll need to renew one or more leases, or move your company into a new location. Whatever you’ll need to accomplish, now is a good time to begin looking at this, as having the correct game plan in place will be a good idea for you before January 1st ever arrives.
Negotiating during commercial real estate transactions can be tough, but when you’renegotiating with someone who has a huge ego on the other side of the transaction, things can get even tougher.
As we’re still more than a year away from the 2020 Presidential election, we can already feel the buildup going on. People are digging in their heels on both sides of the political spectrum, and it will probably get much more heated the closer that we get to the election.
There are a number of reasons why owners will sell their properties, and these reasons can differ, too, depending on whether or not you occupy the building that you own for your business, or whether you own the building purely as an investment.
The cap rate is one of the most basic calculations that investors often utilize when assessing both a property’s value, and its current rate of return on investment. This figure represents a property’s net annual income divided by the purchase price, and for many investors it represents the starting point in determining whether or not a particular property should even be considered for purchase.
While the media and the American public were all caught up in the firestorm of the confirmation hearings for Supreme Court Justice Brett Kavanaugh, the Federal Accounting Standards Advisory Board announced FASAB 56, a resolution that allows companies to alter and misrepresent their financial statements if it is deemed to be in the best interest of national security. In addition, the resolution allows companies to maintain secrecy to the general public about ever having misrepresented their financial statements, too.
Interest rates are such an important determinant for how our economy will be performing. When the cost of capital becomes more expensive, suddenly it becomes less profitable and more risky for businesses to expand, and commercial real estate investment transactions can become less attractive, too. But on the other hand, when interest rates are falling, the cost of capital then becomes cheaper, and both business and real estate investment can benefit from this.
With the availability of good financing being so vital to maintaining a healthy commercial real estate market, it’s important to take a look at what the experts are now forecasting for us within this arena. After all, any changes in the percentage of down payment that’s required for purchasing property, as well as any changes in interest rates, will have a big impact on the continued interest of buyers towards purchasing more commercial real estate, and it will have a big impact on the price that they’re willing to pay for their commercial properties, too.