Top 6 Questions About Commercial Real Estate
Investing in commercial real estate can be intimidating and overwhelming. As an experienced and specialized commercial Realtor here in the Hays, Kansas area, I’m here to share my knowledge and answer the most common questions associated with commercial transactions.
1. What is Commercial Real Estate?
There are many different types of commercial real estate. Buyers and sellers can classify different properties by factors including their purpose, goals, agreements, and terms. While some buyers are looking to start an entirely new business, other are looking to upsize or downsize an existing business.
Then there are also investment properties for residential use. An example of this would be someone buying a duplex to rent out both sides. However, if you buy a duplex to live in yourself and rent the other side to a family member, that’s usually considered to be a residential transaction. The same concept applies to land purchases. If you were to purchase a lot to plant a garden or use it for hunting, that’s a consumer property, but if you buy land to start a ranch or raise cattle, that’s usually considered commercial.
The bottom line is that there are some grey areas when classifying transactions as commercial or residential, but it all depends on the purpose or intended use of the property.
2. Is commercial real estate a good investment in Hays, Kansas?
Yes! We have a healthy market and strong focus on economic development here in Hays. With many available properties, the opportunities are endless. We also have a very progressive, supportive, and loyal community.
Hays is conveniently located at the intersection of US Highway 183 and Interstate 70, bringing in many travelers. Considered a hub in northwest Kansas, Hays is also a regional destination for commerce, retail, dining, entertainment, recreation, and so much more.
There are several organizations in the area that are very supportive to entrepreneurs and business owners. Here are some helpful resources:
Grow Hays (Ellis County Economic Development)
3. Does a person need to be wealthy or experienced to invest in commercial real estate?
The short answer is “no.” There are many misconceptions about commercial real estate and many people think that you have to be wealthy to start investing in real estate. In my experience, that’s simply not the case. Also, experience isn’t necessarily required either. There are many local experts here in the Hays, Kansas area that can help you make the right decisions and guide you to successfully purchasing your first commercial property.
4. How do I find the perfect commercial property?
Commercial real estate has very different purposes, uses, and goals. There is also quite a variety in the types of buyers and sellers. Everyone has their own best interest in mind and the goal is coming to an agreement that benefits both sides of the transaction. Through my experience, I’ve realized that it’s incredibly hard to find a property that is exactly what you need. Many times, buyers have to find something to start with then modify the property to fit their needs. An experienced agent like myself can help buyers determine how to prioritize their list of wants and needs to find the perfect property and help their dreams become a reality.
5. Is it important to work with a Realtor for commercial transactions?
It’s very important for buyers and sellers to have their own representation during commercial real estate transactions. Each commercial transaction is different from the next. It can be complex, so by having an experienced agent by your side, buyers and sellers can rest easy knowing that they’re getting a fair deal.
One difference from residential real estate is that commercial transactions require the buyer to do more investigation and research on the property. There are fewer protections and disclosures required with commercial, so it’s wise for buyers and sellers to work with an agent that knows what they’re doing and knows the traps to look out for.
6. How do I get started with commercial real estate?
Start by partnering with an experienced and specialized agent. As a Realtor, it’s my duty to listen to your goals, present you with options, and guide you to making the best decision. I also suggest involving your bank or lender early on in the process. It can be complicated, but by utilizing my years of experience, I can help any buyer or seller achieve their goals.
Commercial real estate can be intimidating, but don’t let the start stop you. Make the smart decision and partner with an experienced commercial real estate agent to make sure you get to a fair, honest, and successful transaction.
Coldwell Banker Executive Realty